Ignis Petroleum Agrees to Participate in Sherburne Field Development Prospect
Wednesday May 10, 8:00 am ET
DALLAS--(BUSINESS WIRE)--May 10, 2006--Ignis Petroleum Group, Inc. (OTCBB:IGPG - News) is pleased to announce that it has entered into a definitive participation agreement to drill the Sherburne Field Development prospect, located in Pointe Coupee Parish, Louisiana. Under the terms of the agreement, Ignis will pay 15% of the drilling, testing and completion costs. Upon completion Ignis will earn a 15% working interest in the well before payout and an 11.25% working interest in the well after payout. Rodessa Operating Company, Inc. of Corpus Christi, Texas, has been designated as operator of the prospect.
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The prospect is an attic gas play up dip to two Texaco wells that were recompleted in the 1960's to shallower zones after producing more than 15 billion cubic feet (Bcf) of natural gas and 450,000 barrels of condensate. These wells were the highest wells drilled on the structure. Each well was flowing approximately 1 million cubic feet of gas, 12 to 14 barrels of condensate, and 200 to 300 barrels of water per day.
The Sherburne Field was first discovered in the early 1950's and has produced approximately 120 Bcf of natural gas and 2.5 million barrels of oil. The field is a low-relief downthrown rollover anticline structure that produced primarily from Frio sand reservoirs with Cockfield and Sparta sands as secondary objectives. The field extends almost four miles east-west. In all thirteen (13) wells were completed in the zone of interest. None of the wells were drilled on the crest of the structure.
Drilling of the well is scheduled to commence in the third quarter of 2006.
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.
