Indigo-Energy, Inc to Sign Loan Agreement for $686 Million in Funding for Oil and Gas Leases in Illinois Basin
Indigo-Energy, Inc has told the media 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.
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 the Upper Devonian sand formations in Kentucky, Pennsylvania, and West Virginia. 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.
Indigo-Energy, Inc., Henderson Investor Relations: Bob Deakin, 1-866-THE APPL(E)
Source: Indigo-Energy Inc.