HOUSTON, Jan. 25, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. ("Index," "the Company") (OTCBB:IXOG) today announced that the Hawkins 1 exploration well in the Taffy area of Matagorda County, Texas (formerly named Taffy 1) is a commercial discovery.
A completion test confirmed gas flow at a measured rate of 1.038 million cubic feet per day through a choke of 9/64th inch with a flowing tubing pressure of 1,850 psi. In terms of barrels of oil, the above stated flow rate of gas can be converted to approximately 173 barrels of oil equivalent gross, using an industry standard conversion factor of 6. Index has a 12.5% Working Interest in Hawkins 1.
Hawkins 1 is scheduled to begin production from a Miocene sandstone reservoir at approximately 5,000 feet deep into the local pipeline grid during the second calendar quarter 2007.
Hawkins 1, once hooked up and producing, will add incrementally to the Company's reserves and cashflow in line with the Company's strategy to rapidly build a balanced portfolio of producing assets, without exposing investors to single critical events.
Ruse 1 (formerly Taffy 3) was non-commercial and has been plugged and abandoned.
The third and final exploration well in this program, Dark 1 (formerly Taffy 2), is expected to spud as soon as the drill site becomes accessible. To date, heavy rain in the area and the consequent ground conditions have precluded the arrival of the rig. It is expected that operations will recommence during the first quarter 2007.
Dan Murphy, Chairman of Index Oil and Gas, said: "We are encouraged by the results of drilling to date, which meets the expectations of our portfolio approach. The outlook for the Dark 1 well and the overall outcome of the Taffy program continues to be positive."
About Index
Index is a gas biased oil and gas exploration and production company, with activities in Kansas, Texas, Louisiana, Mississippi and Alabama. It has offices in Houston, Texas and Bath, England. Index is focused on efficiently building a broad portfolio of producing properties with what it believes to be significant upside potential and intends to grow its existing asset base and revenues through further investment in the U.S. The Company seeks to develop its activities in areas containing prolific petroleum systems set in stable political and economic environments.
To find out more about Index Oil and Gas Inc. (OTCBB:IXOG), visit our website at http://www.indexoil.com.
Forward-Looking Statements
The statements in the press release that relate to the company's expectations with regard to the future impact the company's results from acquisitions or actions in development are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. Since the information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. Index Oil and Gas Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.