SOURCE: Ignis Petroleum Group Inc

February 09, 2007 10:13 ET

Ignis Barnett Shale Drills Seven Wells and Increases Net Production by 24%

DALLAS, TX -- (MARKET WIRE) -- February 9, 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 is progressing. 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 drilled and completed 7 wells and now have 21
    wells producing oil and gas.  In addition, we have one well drilling and
    one well awaiting completion.
    
--  Net production to IBS's position averaged 92 barrels of oil per day
    (Bopd) and 722 thousand cubic feet of gas per day (Mcfd) in the fourth
    quarter compared with 64 Bopd and 641 Mcfd in the third quarter, an
    increase of 24% 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 increased to an average 3,679 Mcfd in
    the fourth quarter compared with 3,445 Mcfd in the third quarter, a 7%
    increase.
    
--  To date, we have drilled two horizontal wells with one well presently
    producing oil and gas and one well in completion.  A third horizontal well
    is presently being drilled.  During 2007, we plan to drill a total of three
    vertical and eight horizontal wells, utilizing the Pioneer Drilling Company
    #39 drilling rig which we have on continuous contract.
    
--  We recently 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, is currently delivering an
    average of 195 Bopd and 428 Mcfd in gross production.  Through the end of
    2006, the well produced approximately 78,000 gross barrels of oil and
    268,000 gross Mcf of gas.
    
--  The well began producing water in early October 2006, but has
    maintained a steady 50% water cut through the end of the year.  Flowing
    tubing pressure remains high at around 1,775 psi.  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 Anadarko Petroleum Corporation is the operator.
    
Sherburne Prospect
--  The Sherburne Field development prospect, located in Point Coupee
    Parish, Louisiana, is still undergoing testing.
    
--  Drilling was completed in September 2006 after which 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.
    
--  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 operate and has produced approximately 5,600 gross barrels of oil and 44
    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.  Ignis is
    investigating what our options may be in regard to these wells.
    
--  The Company has a 12.5% working interest in the wells in which Rife
    Energy Operating, Inc. 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 www.ignispetro.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
    214-459-3193
    pd@ignispetroleum.com