Under My Radar - IGPG

Extracted from "The Natural Contrarion"

Early Contrarians who buy Ignis Petroleum now below $1.50 will witness a 200% gain in weeks and over 1,200% in less than 24 months.

Barnett Shale Prospect, Texas
Ignis Petroleum reports that its Inglish Sisters #3 well in the Barnett Shale has begun production after successful completion. The Inglish Sisters #3 began recording revenue on April 7, 2006 and, as of April 17, 2006, has produced 1,300 barrels of oil and 7.1 million cubic feet of gas. Ultimate recovery and reserve estimates will be determined based on analysis of production data obtained in the coming months.
The Inglish Sisters #3 well is the first of three wells in which Ignis is currently participating in the Barnett Shale. The other two, the Powell #1 well, located in Montague County, Texas and the Powell #2 well, located in Cooke County, Texas, are scheduled to be fully completed shortly.

Acom A-6 Project, Texas
Ignis Petroleum recently announced the discovery of oil and gas on its Acom A-6 project with the successful completion of the A-6 well. Ignis reports that the A-6 well is currently producing oil and gas at an average daily rate of 120 barrels of oil and 460 thousand cubic feet of gas.

IGPG’s management team is placing the final touches on a pending agreement with industry behemoth Kerr-McGee (KMG – NYSE) on an expansive drill campaign for the Acom A-6 project. Surrounded by highly successful drilling campaigns, reserve estimates on this prospect are reported to be an incredible 9 BILLION cubic feet of natural gas.

In fact, one nearby blockbuster well, the Tex Miss, has produced over 3.4 BILLION cubic feet of gas in just 18 months of initial production. Kerr McGee/Ignis Petroleum are focusing on what is believed to be a continuance of this expansive petroleum-bearing structure. A major hit on the Acom A-6 would be an immediate “Company Maker” for Ignis Petroleum – one that would likely send the IGPG share-price exponentially higher.

Barnett Crossroads Area Map
The green arrow indicates the location of the prospect. Just a mile to the east, more than a million barrels of oil has been produced from a moderate sized structure that is about 20% larger than the prospective structure. Less than a mile south and one mile to the north, two small structures have produced over 200,000 barrels of oil each. More than a million barrels of oil has been produced from a moderate-sized structure to the northwest of the prospect.

Barnett Crossroads Project, Alabama
Ignis has now commenced operations on this relatively low-risk oil prospect with the drilling of the 19-1 #1 well. Upon successful completion, IGPG will own a 75% working interest, or 52.5% net revenue interest, in the well. Ignis expects to reach its full target depth of around 14,500 feet in the coming weeks.
Recent analysis suggests that this property could produce in excess of 500,000 BOE (barrels of oil equivalent) — that’s over $35 MILLION in potential revenues at current oil prices. The Gravel Church field to the east of the property has produced in excess of 1 million barrels of oil. Less than a mile south and one mile to the north, two structures have produced over 200,000 barrels of oil each.

Surrounded by successful drilling, and with an expected production rate of 300 barrels of oil per day, the Barnett Crossroads project represents a relatively low-risk oil target that should translate to a significantly higher IGPG share-price in the coming months.

North Wright Prospect, Louisiana
Seismic data suggests that the North Wright Prospect could contain over 118 BILLION cubic feet of gas. That level of natural gas production has the potential to generate a staggering $826 MILLION at current natural gas prices of around $7 per thousand cubic feet.

The North Wright Field is surrounded by Big-Money drilling campaigns. Similar production is currently underway at two fields within seven miles of the prospect. The Leleux Field, located just seven miles to the east along the same geologic formation, has produced over 200 Bcf (billion cubic feet) of gas with an estimated recovery of over 400 Bcf of gas. The Wright Field lies just five miles to the south and has produced over 64 Bcf of gas from just two wells over the last five years.

The pending development plan on the company’s North Wright Prospect estimates four wells (one well per year) to extract the potential natural gas reserves. The Ignis team projects a first year cash flow (net royalty interest) of over $20 million – which I project will translate to a major portfolio win for early IGPG shareholders.

Crimson Bayou Prospect, Louisiana
IGPG’s Crimson Bayou prospect, located in Iberville Parish, Louisiana, is expected to commence drilling in July. Ignis has signed a participation agreement with major energy producer Range Production Company (RRC – NYSE) on this prospect. Upon successful completion of the first well, Ignis will own 25% of the working interest.

Ignis Petroleum boasts a seasoned management team of industry professionals that command the attention of the “Big Players.” By teaming up with top-tier producers like Range Production Company, Ignis Petroleum is setting the foundation for long-term oil and gas production success.