HOUSTON, July 18, 2006 (PRIMEZONE) -- Index Oil and Gas, Inc. ("Index," "the Company") (OTCBB:IXOG) today announced that the Company has signed contracts to increase its equity interest in two exploration wells already signed with a partner.
Index previously held interests in four wells to be drilled in Louisiana and South Texas during 2006 under a joint operating agreement with the Crawford Operating Company.
One of these, Walker No. 1, has already been drilled successfully and the construction of the production pipeline is nearing completion. First production from Walker No. 1 is expected by the end of this month.
Having reviewed the prospects for the remaining 3 wells, Index has now elected to increase its equity in two of them:
-- Vieman No. 1; originally 12.5%, now increased to 17% -- Taffy No. 2; originally 7.5%, now increased to 20%
In the event of commercial success, and these wells being put into production, this increased equity would have the effect of enhancing near term revenues for Index from these prospects.
Vieman No. 1 has an anticipated spud date in September 2006. Taffy No. 1 (where Index's equity remains at 7.5%) and Taffy No. 2 (with the increased 20% equity) will be drilled in late Q3 or early Q4 2006.
About Index
Index is a gas biased oil and gas exploration and production company, with activities in Kansas, Texas and Louisiana. 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 (OTCBB:IXOG), visit our website at 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. 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.