Ignis Petroleum Group, Inc.
OTC Bulletin Board : IGPG

November 07, 2005 08:00 ET

Ignis Petroleum Group, Inc. Signs LOI with an Industry Partner to Participate in a Louisiana Prospect

DALLAS--(CCNMatthews - Nov 7, 2005) -

Ignis Petroleum Group, Inc. (OTCBB:IGPG) announced today that the Company 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."

About Ignis Petroleum

Ignis Petroleum Group, Inc. is a Dallas-based oil and gas company executing its business plan for the exploration, acquisition and development of crude oil and natural gas properties in the United States. Company management is building an energy portfolio that will combine low-risk, high-potential projects with higher-yield, moderate-risk projects. The Company 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, as amended, 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.

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