SOURCE: Ignis Petroleum Group, Inc.

June 01, 2007 13:33 ET

Nine-Month Operations Report: Ignis Barnett Shale Drills Nine Wells and Increases Net Production by 35%

DALLAS, TX--(Marketwire - June 1, 2007) - Ignis Petroleum Group, Inc. (OTCBB: IGPG) today provided the following operations and production update:

St. Jo Ridge (Barnett Shale) Field

Our program with W.B. Osborn Oil & Gas Operations ("WBO") to develop the field located in Montague and Cooke Counties, Texas, continues to progress and add to production. WBO owns 55% of the working interest and Ignis Barnett Shale, LLC ("IBS"), a partnership owned by Ignis Petroleum Group, Inc. and Silver Point Capital, owns 45%. The following are selected highlights:

--  As of the effective date, June 1, 2006, there were 14 producing wells.
    
--  Since June 1, 2006, we have drilled and completed 9 additional wells
    and now have 23 wells producing oil and gas.  In addition, we have one well
    drilling and one well awaiting completion.
    
--  Gross production averaged 402 Bopd and 3,115 Mcfd in the first
    quarter. Net production to IBS's position averaged 128 Bopd and 948 Mcfd in
    the first quarter 2007 compared with 92 Bopd and 722 Mcfd in the fourth
    quarter,  an increase of 35% on a barrel of oil equivalent basis.
    
--  IBS also derives revenue from its 45% ownership in the 26-mile gas
    gathering and treating system, which transports third-party gas in the
    area.  Gross throughput to the plant was steady at an average 3,540 Mcfd in
    the first quarter 2007, compared with 3,679 Mcfd in the fourth quarter
    2006.
    
--  To date, we have drilled four horizontal wells with three wells
    presently producing oil and gas and one well in completion.
    
--  As reported earlier this year, we completed the purchase of additional
    working interest in the Meador Ranch lease (721 gross acres) to increase
    our working interest to 22% from 11%.  This acquisition included production
    from three existing wells.
    
Acom-A6 Well
--  The well located in Chambers County, Texas produced an average of 188
    Bopd and 457 Mcfd in the month of April 2007.  Through April 2007, the well
    had produced approximately 96,000 gross barrels of oil and 309 gross Mmcf
    of gas.
    
--  As previously reported, upon depletion of the currently producing
    interval, several additional prospective zones behind pipe will be
    considered for testing.
    
--  Ignis Petroleum Group, Inc. owns a 25% working interest in the well in
    which  Denbury Resources is the operator pursuant to their purchase of
    Anadarko's interest in this well.
    
Sherburne Prospect
--  The Sherburne Field development prospect, located in Point Coupee
    Parish, Louisiana, is still undergoing testing.
    
--  Drilling was completed in September 2006, pipe was set and two
    intervals of interest were tested with non-commercial indications of gas.
    
--  The partners are currently considering an initiative to perforate and
    test another prospective interval, the 9,400' sand.  This interval appears
    to have some water saturation from log analysis, but has produced a large
    volume of natural gas historically from a number of wells in the area;
    however, recently, the well has been inaccessible due to wet conditions in
    the area.
    
--  Ignis has a 15% before payout working interest in the well in which
    Rodessa Operating Company is the operator.
    
Barnett Shale Wells
--  The Inglish Sisters #3 well located in Cooke County, Texas continues
    to produce and has made approximately 6,000 gross barrels of oil and 50
    gross million cubic feet of gas from the Barnett Shale since coming on-line
    last year.
    
--  Two additional wells, the Powell #1 and Powell #2 have been drilled
    and completed but have not yet produced in commercial quantities.  We
    continue to investigate options in regard to these wells.
    
--  The Company has a 12.5% working interest in the wells in which ReoStar
    Energy is the operator.
    
About Ignis Petroleum

Ignis Petroleum Group, Inc. is a Dallas-based oil and gas production company focused on exploration, acquisition and development of crude oil and natural gas reserve in the United States. The Company's management has closely aligned itself with strategic industry partnerships and is building a diversified energy portfolio. It focuses on prospects that result from new lease opportunities, new technology and new information.

For further information, visit http://www.ignispetroleum.com.

Safe Harbor for Forward-Looking Statements

This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in oil and gas exploration, the need to obtain additional financing, the availability of needed personnel and equipment for the future exploration and development, fluctuations in gas prices, and general economic conditions.

Contact Information

  • For Investor & Media Inquiries, contact:
    Patty Dickerson
    Vice-President External Affairs
    972-526-5255
    866-67-IGNIS
    pd@ignispetroleum.com