Insignia Energy (Insignia) has provided an operational update for its fourth quarter 2009 drilling program. At Pouce Coupe, Alberta, the company has drilled, cased and completed a 100% owned horizontal well at 13-29-77-11 W6M (the 13-29 well) to a total depth of 3,450mt, which includes a 1,285mt horizontal section in the Lower Doig formation.

The company said that sample and background gas analysis indicated quality reservoir for the entire length of the horizontal. The well was completed through a cemented liner with nine separate multi stage fracture completions. Following completion, the well produced up 4 1/2″ casing for a clean-up and test period of 140 hours. The final flow rate was approximately 4mmcf/d at a flowing wellhead pressure of approximately 600 pounds per square inch.

The 13-29 well is currently shut in pending the recovery of downhole pressure recorders and, once retrieved, it is anticipated that the well will be tied in and placed on production prior to the end of February 2010. The company has approximately 29 net sections of land in the immediate area. This land is prospective for both the Montney and Doig formations and Insignia has identified in excess of 80 net drilling locations.

At Caroline, Alberta, the company has drilled, cased, completed and tied in a 100% owned vertical well at 16-13-34-7 W5M (the 16-13 well) to a total depth of 3100mt. The 16-13 well was completed in six separate intervals including the Glauconitic, Ostracod and Ellerslie formations. The well has been on production since early January 2010, at an average rate of approximately 2mmcf/d of liquids rich gas plus 25bbls/d of free condensate for a total production rate of approximately 350boe/d.

The Caroline area is located in the heart of the Alberta deep basin and has multi zone stacked horizons including the shallow Cardium and Viking formations as well as the deeper formations recently completed by Insignia in the 13-29 well. This is an emerging area for Insignia and, at present, the company has 15 net sections of prospective lands and has identified in excess of 15 net drilling locations on these lands.

At Grand Prairie, Alberta, the company has drilled, cased and completed a 100% vertical well at 16-1-72-7 W6M (the 16-1 well) to a total depth of 1,120mt. The 16-1 well was targeting the Dunvegan formation and this formation has been completed and is pending further analysis.

The company is advancing its drilling and capital program for the first half of 2010, which presently includes follow up drilling at each of its Pouce Coupe and Caroline areas with an additional 100% owned horizontal well planned at Pouce Coupe and up to two (1.5 net) vertical wells at Caroline.

As well, in the Pembina area, Insignia holds 4.5 net sections in Twp 48 Rge 5 W5M. These lands are highly prospective for the Cardium oil development. The company has identified approximately 24 net drilling locations on these lands and is currently moving forward to drill the first of these wells in mid 2010.

The company exited 2009 at a rate of 2,050boe/d and is currently producing approximately 2,350boe/d.