Indigo-Energy, Inc. announces that the Company has signed a Letter of Intent to acquire approximately 106,000 acres of gas and oil leases in the Illinois Basin. The properties are located in Southern Illinois, Southwestern Indiana and Western Kentucky; and this transaction will also include the acquisition of a natural gas processing facility in Southern Indiana.
Indigo-Energy, Inc. recently signed a Letter of Intent with International Financial Corporation, LLC (IFC) to partner in Rivers West Energy, LLC. Upon execution of the agreement, IFC has agreed to provide the newly formed LLC with funds totaling $624 million. Pursuant to the completion of the agreement, Indigo-Energy will retain 60 percent ownership of Rivers West Energy, with IFC owning the remainder.
“These leaseholds are a key acquisition for us, and we plan to fully develop the natural resources historically abundant in this region. As a result, we anticipate building what we believe will be a state-of-the-art oil and gas drilling and production operation. By utilizing the cutting edge technology along with terrific field expertise, we believe that these resources can be recovered much more efficiently and economically than in years past,” stated Steve Durdin, CEO and President of Indigo-Energy, Inc.
The Illinois Basin is a cratonic basin that covers approximately 60,000 square miles across three states. There is a growing interest in the area for its potential oil and natural gas reserves, and the fuel resources would be utilized throughout the U.S. in the hopes of contributing to a nationwide effort to reduce the dependency on foreign sources.