IGPG Ignis Petroleum Group Inc (CE)

Ignis Petroleum Group, Inc., (OTCBB:IGPG), today provided the following operations update. Michael P. Piazza, President and Chief Executive Officer said, "I would like to take this opportunity to express my thanks to our shareholders for your continued loyalty. Ignis ("Your Company") remains on track to evaluate and develop drilling projects. As you are aware, oil and gas resource evaluation and development is a time consuming process, particularly true now as rig scarcity is delaying projects for the entire industry, and new resource plays, which are now becoming economic at current prices, require significant lead time in development planning. Our goal remains to reward you for your patience and loyalty with significant returns on investment as the Company executes potentially high-return projects. "To that end, we continue to expand the scale and scope of our potential development activities. We are now actively pursuing partnerships with independent oil & gas companies to develop significant resources in our onshore U.S. Gulf Coast and Mid-Continent focus areas, and with bank and fund managers to provide financing when we need it. These efforts have been ongoing since last year and are expected to come to fruition in the near future. In connection with these efforts, Eric Hanlon recently joined the Ignis team as a full-time advisor with responsibilities over mergers, acquisitions and partnerships. Eric brings more than 15 years of industry experience, gained as a Partner with McKinsey & Company in Houston and as Vice-President with Shell Oil Company in London. During his career, Eric has been instrumental in devising company strategy and structuring and negotiating complex partnership and financing arrangements for major and large independent energy companies. "Regarding our ongoing operations, we recently performed a workover of our Acom A-6 well, located in Chambers County, Texas. The purpose of this project was to clean out a paraffin buildup in the well, which had progressively reduced the oil and gas production rates. Upon completion of the project, the downhole pressure increased to levels close to those encountered when production began in October, 2005, and average daily production rates have now increased to over 225 barrels of crude oil and 1.15 million cubic feet of natural gas. Additionally, a result of the workover has shown that the reservoir has not been depleted to the extent we originally estimated and that a significantly higher amount of oil and gas may be present. Your Company has a 25% working interest in the well in which Kerr-McGee is the Operator. "The Sherburne Field development prospect, located in Point Coupee Parish, Louisiana, remains on schedule for development this quarter. The location has been prepared and is ready to accept the drilling rig, which is expected to spud the well in July. The target depth is 9,800 feet and should take approximately one month to complete drilling operations. We will provide more information as the project progresses. The Company has a 15% before payout working interest in the well in which Rodessa Operating Company is the Operator. "The Crimson Bayou Prospect, located in Iberville Parish, Louisiana, has been delayed from its second quarter drilling date. A minimum water level in the Atchafalaya Basin is needed in to allow safe movement of a barge rig to and from the drilling site. During the second quarter, the water did not reach this level when the barge rig was available. The Operator, Range Resources, expects the water levels to be sufficiently high enough when the rig becomes available again later this year, but at this time, we do not have a scheduled date for this drilling to begin. The Company owns a 25% before payout working interest in the prospect. "The three Barnett Shale wells, located in Montague and Cooke Counties, Texas continue to operate and have produced over 4,600 barrels of gross crude oil and 26 million cubic feet of gross natural gas since coming on-line in the second quarter. Two of the three wells have been only partially completed thus far to allow the Operator to test the lower productive zones. The final completions in these two wells are expected within the next three months at which time production in these wells is expected to increase. The Company has a 12.5% before payout working interest in the wells in which Rife Energy Operating, Inc. is the Operator. "As we recently told you, we welcomed our new Vice President of External Relations, Patty Dickerson, who joined us last month. Patty will be responsible for strengthening and expanding our communications and investor development activities. I invite you to call and get acquainted. Patty's direct line is 214-459-3193, the toll-free shareholder number is 1-866-67-IGNIS (1-866-674-4647) or you can reach her at pd@ignispetroleum.com. It's an exciting time for Ignis and we look forward to reporting on our progress in the months to come." 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.