IDGG | Indigo Energy Signs Loan Agreement For $686 Million in Funding For Oil And Gas Leases

Penny Stock News RoundUp

Jul 28, 2008 8:31:00 AM
Copyright Business Wire 2008

Indigo-Energy, Inc. (OTCBB: IDGG) is pleased to announce that the Company has signed a Loan Agreement with BJ Petro, Inc., a Nevada corporation. BJ Petro has agreed to provide Indigo-Energy, Inc. with funds totaling $686,400,000, which the Company plans to utilize to complete the purchase of and commence the subsequent development of approximately 135,000 acres located in southern Illinois, southwestern Indiana and western Kentucky.

"With this funding package in place, we are highly optimistic about our company's future. Invested in the execution of our strategic plan, these funds will enable our development of state-of-the-art natural gas and oil production facilities, including the construction of regional pipelines and related infrastructure, within key areas throughout the Illinois Basin. We thank our shareholders for their patience throughout our recent months of funding efforts and believe this investment will allow us to return value to our investors," stated Steve Durdin, CEO and President of Indigo-Energy, Inc.

The agreement provides that Indigo-Energy will receive the initial phase of funding within 30 business days following its posting of a Standby Letter of Credit (SBLC) to BJ Petro in the amount of $10 million, which Indigo-Energy expects to deliver by the end of this week. The term of the funding agreement with BJ Petro is 15 years.

The Illinois Basin is a geologic region of approximately 60,000 square miles stretching across three states, with increasing interest for its potential oil and natural gas reserves. Indigo-Energy expects the natural gas and oil resources to be utilized in the United States to contribute to a nationwide effort to reduce the dependency on foreign sources of fuel.

As part of its fiduciary responsibility, the Company and its Board of Directors will continue to pursue additional strategic alternatives that may be in the best interest of its shareholders. Such alternatives include the previously announced funding plan with International Financial Corporation, LLC; a transaction separate from today's announced funding proposal.