Ignis Petroleum to Participate in Iberville Parish Prospect
Ignis Petroleum Group has signed a letter of intent with an industry partner to purchase a working interest in a prospect located in Iberville Parish, Louisiana. The prospect is estimated by the partner to hold oil and gas reserves in excess of 30 billion cubic feet of gas equivalent.
According to the letter of intent, Ignis will participate in the drilling of the initial test well sufficient to test various shallow Miocene Sands as well as the deeper Oligocene Cibicides Hazzardi Sands. In exchange for Ignis paying twenty-five percent (25%) of the test well costs and lease bonus, rental and geological and geophysical costs already expended, Ignis will receive a twenty-five percent (25%) working interest in the test well before payout of the test well and a twenty percent (20%) working interest after payout of the test well or as of the commencement of drilling of any subsequent well on the leases.
Ignis plans to enter into a mutually acceptable Participation Agreement and Operating Agreement, naming the partner as Operator, before the end of the year. Drilling of the test well is expected to begin before the end of the first quarter 2006.
Commenting on LOI, Michael Piazza, President and CEO of Ignis,
said, "We are excited to participate in this high-potential prospect.
The nature of this opportunity, namely multiple objectives defined by
subsurface control and 3-D seismic, makes the prospect an ideal fit to
our portfolio of drillable prospects."
- Ignis Petroleum Acquires Anadarko's Liberty Hills Prospect in Louisiana (Sep 07)
- Ignis Taps Stancil to Head Exploration (Jan 04)
- Ignis Petroleum Acquires Acreage in Barnett Shale (Sep 29)