HOUSTON, March 7, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. ("Index," "the Company") (OTCBB:IXOG) today announced the Vieman 1 production well was successfully drilled and encountered gas-bearing pay zones ("pay") in its Frio reservoir targets.
The well, located in the Manor Lake area of Brazoria County, Texas, encountered multiple gas pays. The hydrocarbon-bearing interval currently being tested is between the measured depth of 11,180 feet and 11,320 feet and is estimated to contain a total of 16 feet of net pay. A test was conducted in the lower part of the interval that flowed at a rate of 2.83 million cubic feet of gas and 25 barrels of condensate per day, or roughly 497 barrels of oil equivalent on a 10/64 inch choke with a flow tubing pressure of 3,808 pounds per square inch.
A long-term test of the reservoir from the lower part of the currently producing interval in the Vieman 1 production well has produced gas since February 12, 2007 following the installation of a 6,300 feet flow line from the well to the local pipeline grid. Through 21 days of production, 18.3 million cubic feet of gas and 127 barrels of condensate have been produced.
The operator is planning a pressure build-up test to aid in planning the next steps in testing and completion of the rest of the interval.
Additional potential gas pay above 11,000 feet has also been identified in the well and is expected to be tested at a later date.
Index's March 31, 2006 external reserves audit classified the Vieman 1 gas as Proved Undeveloped reserves. Index will continue to evaluate the Vieman 1 reserves as additional data becomes available. The reserves will be updated in the March 31, 2007 external reserves audit and reported as soon as the audit is completed.
Index has a 19.5% working interest in the Vieman 1 well.
Lyndon West, CEO of Index Oil and Gas said, "Vieman appears to be another successful well. With the Company continuing to drill its portfolio wells, including some larger prospects, I look forward to updating shareholders on progress in the coming months."
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.