HOUSTON, Aug. 16, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that drilling has begun on the Outlar 1 well in the West Wharton Prospect located in Wharton County, Texas. The spud took place on August 12, 2007.
Outlar 1 is the third well that has spudded during Index's new fiscal year ending March 31, 2008. Index has a 12.5% working interest for all costs associated with drilling this initial test well on the prospect to first production. It will thereafter have a 10.9375% working interest in this well and in any other wells drilled on the prospect before prospect payout. After payout of the prospect, Index's working interest will reduce to 9.375%.
Outlar 1 has a planned total depth of approximately 12,000 feet and targets gas in the Cook Mountain formation. The well is located near the town of Wharton.
Lyndon West, CEO of Index, stated, "The spudding of Outlar 1 is an important part of Index's fiscal year 2008 drilling program and occurred ahead of our expected schedule. Having 3 High Impact wells simultaneously drilling or completion during this period (including George Cason 1 and Shadyside) makes it an extremely exciting time for us. Subsequent wells on this West Wharton Prospect are anticipated, should we get encouraging results from this initial test well."
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.