HOUSTON, July 19, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that drilling has begun on the Shadyside 1 well in the Shadyside Prospect located in St. Mary Parish, Louisiana. The spud took place on July 17, 2007.
Shadyside 1 is the second well that has spudded during Index's new fiscal year ending March 31, 2008. Prior to the signing of the Alligator Bayou agreement (announced on July 17, 2007), Shadyside was the largest prospect in the Company's planned higher impact drilling portfolio (described in its Operations Summary and Outlook announced on June 11, 2007). Index has a 15% working interest in the well and a 13.5% working interest after payout of the prospect.
Shadyside 1 has a planned total depth of 16,500 feet and targets multiple Miocene gas reservoirs in the bottom 1,500 feet of the well. These reservoirs have produced large quantities of natural gas from the nearby Garden City Field.
Lyndon West, CEO of Index, stated, "The spudding of Shadyside is an important event for Index. If successful, the well could markedly add to our reserves and production base. Its proximity to the giant Garden City Field, its multiple objectives, and its relatively low risk are excellent attributes for an exploration well. This potentially high-impact prospect is exactly the type of project in which Index strives to participate."
About Index Oil and Gas
Index is a gas-biased oil and gas exploration and production company, with activities primarily in Texas, Louisiana, and Kansas. It has offices in Houston, Texas and Bath, England. Index is focused on efficiently building a broad portfolio of producing properties that it believes to have significant upside potential. The Company has an enviable drilling record and intends to grow its existing asset base and revenues through further investment in the U.S. Index 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 www.indexoil.com.
The statements in the press release that relate to the Company's expectations with regard to the future impact on 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 the Company believes 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. The Company 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.
Pursuant to a June 1, 2007 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides the Company with consulting, business advisory, investor relations, public relations and corporate development service, for which CFSG1 receives cash and/or stock compensation.