HOUSTON, June 5, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or the "Company") today announced that, pursuant to the Letter of Intent announced February 16, 2007, the Company has contracted to participate in the Shadyside Prospect ("Shadyside") in Saint Mary Parish, Louisiana.
Shadyside is Index's largest contracted prospect to date. Index will have an initial 15% working interest in the first exploration well, reducing to a 13.5% working interest in the event of success, after payout.
The first well will be drilled during the first half of 2007 with a planned total depth of approximately 16,500 feet. It will target multiple Miocene gas reservoirs in the bottom 1,500 feet of the well. Similar reservoir horizons have produced very significant quantities of gas -- over 2 trillion cubic feet (around a third of a billion barrels of oil equivalent) -- from the nearby Garden City Field.
Index's participation in Shadyside is in line with Index's strategy to include in its exploration portfolio potentially high impact wells that offer Index opportunities for significant upside results without exposing investors to single critical events. In its fiscal year ended March 31, 2007, the Company successfully drilled a number of lower risk and reward prospects that generated near-term reserves and production. In April 2007, Index announced its participation in the West Wharton Project in Wharton County, Texas. In May 2007, Index announced the successful production of Index's Serrano gas discovery, Friedrich Gas Unit 1, in Victoria County, Texas.
Lyndon West, CEO of Index, commented, "Shadyside offers significantly positive potential for Index in the event of success. It is our largest prospect contracted to date and advances our balanced portfolio approach to exploration. We are excited about participating in this project, which we believe will benefit the company and our shareholders."
About Index Oil and Gas
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 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 learn more about Index Oil and Gas Inc., 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 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 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.