SOURCE: Insight Management Corporation

Insight Management Corporation

January 25, 2010 07:25 ET

Insight Management Reports on Opportunities in Natural Gas Well Services Market

ORCUTT, CA--(Marketwire - January 25, 2010) - Insight Management Corporation (OTCBB: ISIM) is pleased to report on developments in the natural gas sector that are enabling its well services business to increase sales and expand customer relationships.

Rebel Testing, Inc., acquired by Insight Management in June of 2009, is an expertly managed regional oil and gas field services company with a long roster of established customers and an eighteen year history of profitable operations. The wholly owned subsidiary provides pump hoist services in the greater Powder River Basin and blow out prevention services for customers in Colorado, Wyoming and Utah.

According to the Deloitte Center for Energy Solutions' most recent survey of oil and gas professionals, the United States is entering an age of plenty for natural gas. The overwhelming majority of survey respondents, 84 percent, say the best days for the natural gas industry are still ahead, despite today's low prices. Industry sentiment behind the favorable outlook for natural gas is attributed to a surge in production from unconventional formations, such as shale and coal bed methane, and to the expectation that climate change legislation will increase the demand for gas-powered electricity generation. (Deloitte Center for Energy Solutions, December 2009)

Deloitte reported that 61 percent of those surveyed believe revenues at supply and service companies are expected to grow rather than contract. 85 percent of respondents believe the domestic production of natural gas will increase in the next five years.

As reported, Rebel Testing's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) more than doubled during the third quarter to $214,505, an increase of 131% over the second quarter of 2009.

On January 12th the U.S. Department of Energy's Energy Information Administration (EIA) released its latest Short-Term Energy Outlook, which includes monthly forecasts through December 2011 for the first time. EIA projects the spot price of natural gas at the Henry Hub will increase to an average of $5.36 per thousand cubic feet (Mcf) in 2010, which is $1.30 per Mcf more than the 2009 average of $4.06 per Mcf. The price is projected to continue increasing in 2011, averaging $6.12 per Mcf.

Furthermore, the American Petroleum Institute reported the estimated number of U.S. oil and natural gas wells and dry holes completed in 2009 -- 39,068 -- was 37 percent lower than 2008, but fourth quarter totals of 10,609 completions were 19 percent higher than the third quarter, which in turn had been up 6 percent from the second quarter. (API, Fourth Quarter Drilling Estimates, January 18, 2010)

President and CEO Jennifer Rapacki commented: "The latest industry reports of favorable developments in the natural gas sector fit with what we are seeing in the marketplace. Increased drilling activity, leasing, production, prices and demand for natural gas are fueling the market for field services where Rebel Testing operates. We are acting on opportunities to acquire new business and expand existing relationships and are excited to see our efforts come to fruition."

About Insight Management Corporation (OTCBB: ISIM)

Insight Management Corporation (ISIM) is a public holding company focused on the energy industry. The company acquires oil and gas services businesses with substantial revenues, profitable operations, established customers and proven management teams. Insight Management creates synergistic alliances, provides access to capital markets and capitalizes on the expertise of its subsidiaries to achieve company growth and value for shareholders.

About Rebel Testing, Inc.

Rebel Testing, Inc. of Gillette, Wyoming, has been in business for over eighteen years and is a leading Rocky Mountain regional oil and gas field services provider. The company maintains a fleet of pump hoist trucks servicing the greater Powder River Basin. RTI also has operations based in Colorado servicing and pressure testing blow out preventers and provides these services in the greater Colorado, Wyoming and Utah areas. Customers include, among others, two Fortune 500 oil and gas corporations.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ISIM has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the ISIM's current beliefs and are based upon information currently available to it. Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the ISIM's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. ISIM undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.

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