Indigo-Energy Updates Progress Made in Illinois Basin

HENDERSON, Nev., Sept. 27, 2011 /PRNewswire/ -- Indigo-Energy, Inc. (OTC: IDGG) Indigo-Energy is pleased to provide an update on developments in the Illinois Basin Dubois well project.  As was reported two weeks ago, the Company was taking steps to replace and repair equipment necessary for the successful disposal of water from its gas and oil wells via a water injection system.  This water comes about as a natural by-product in the production of both natural gas and oil and the Company encountered a failure of this essential pump system earlier this year which has, in addition to other challenges, delayed efforts to begin producing gas and oil on a consistent basis.

Indigo is pleased to announce today that the injection pump system has been successfully repaired and is now operational.  The Company has completed a series of tests on the new equipment and is satisfied that the enhanced system will be capable of handling the water transfer and disposal needs for the field as wells are brought online.  The immediate next steps in the field plan will include the repair or replacement of some hardware on the D-1 horizontal oil well along with the first stage of work on the "Field Redundancy Plan" that was briefly outlined in the prior news release.  This plan, when completed, will add layers of operating capacity to the field and create back-up systems for all of the wells as well as the water disposal system.  In addition, field personnel will be completing some final steps on the older wells that have been revitalized as part of the Company's efforts to satisfy tasks mandated by the Indiana Department of Natural Resources (DNR).  These older wells include 1 natural gas well and 2 oil wells that are expected to add production to the overall capacity of the field over the next 90 days.  The Company also has successfully completed the plugging of 5 dormant wells which were the subject of long-standing DNR violations.  These wells were drilled many years before Indigo became involved with this project and needed to be remediated as part of the Company's overall efforts to develop this field.

Indigo and its investment partner are working diligently to complete the aforementioned field work before the weather begins to add additional operating challenges later this year.  When completed, the Company believes that the redundancy plan will provide smoother operations for all of the wells and provide back-up systems so the down-time experienced in the past because of equipment failure will be able to be greatly reduced.  It is also intended that the completed plan will lessen the impact of severe weather in all seasons.  The Company remains optimistic about the potential of this project and will provide additional communication to shareholders next month.

About Indigo-Energy, Inc.:

Indigo-Energy Inc. is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in different geological regions around the United States. This involves drilling of developmental oil and gas wells at the different program sites on proven reserves. It also includes the purchase of producing oil and gas wells, and existing oil and gas leasehold interests.  

Safe Harbor: Statements contained in this press release that are not based upon current or historical fact are forward looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties, and events that may be beyond the control of Indigo-Energy, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to successfully complete drill projects, adapt to changes in technology, and energy competition.

Contact:  Investor Relations, Cathy Root 1-702-990-3387

SOURCE Indigo-Energy, Inc.