Index Oil and Gas, Inc. ("Index," "the Company") (OTCBB:IXOG) today announced that the Company, via its wholly owned Index Offshore LLC subsidiary, has signed a letter of intent to participate in the first exploration well in the Shadyside prospect, a highly significant opportunity for Index.
On February 7, 2007, Index signed the Letter of Intent anticipating the Company's participation in the Shadyside Prospect, located in St. Mary Parish, Louisiana. Subject to the parties entering into mutually acceptable definitive agreements covering the Shadyside prospect, Index will have an initial 15% working interest in the first exploration well, reduced to a 13.5% working interest, after payout.
This first well will be drilled during the first half of 2007 with a planned total depth of approximately 16,500 feet. This well will target multiple Miocene gas reservoirs in the bottom 1,500 feet of the well. These reservoirs have produced significant quantities of gas from the nearby Garden City Field.
Index is pleased to have the opportunity to participate in the Shadyside prospect, the Company's most significant well to date. Index expects to release further information on the prospect in the event that the Company enters into the formal exploration agreement contemplated by the Letter of Intent announced today.
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.