HOUSTON, July 17, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or the "Company") today announced that it has signed a Purchase and Sale Agreement to acquire a 5% working interest and 3.5% Net Revenue Interest ("NRI") in the Alligator Bayou exploration prospect located beneath onshore portions of Brazoria and Matagorda Counties, Texas ("Alligator Bayou").
Alligator Bayou is the largest prospect the Company has signed to date, with potential impact greatly exceeding all previous prospects. The prospect covers up to several thousand acres. The first well is planned to spud in approximately six to nine months.
Alligator Bayou could enhance the Company's business very materially. The company's estimated pre-drill risked mid-case NRI volumes are five times larger than those of the Shadyside prospect announced in June, which was the Company's largest prospect prior to Alligator Bayou. In accordance with Index's business plan, described in the Company's Operations Summary and Outlook released June 11, 2007, the Company's prudent working interest balances risk, reward and costs, and limits the downside of a single critical event.
Alligator Bayou follows two announcements in late June 2007: participation in the Cow Trap project, a relatively low risk well with Proved Undeveloped Reserves, and the spudding of the Cason 1 well, another of the Company's planned higher impact projects for the fiscal year ending March 31, 2008.
Lyndon West, CEO of Index, stated, "Alligator Bayou is a truly outstanding exploratory prospect. We are pleased to participate in this opportunity that will be led by one of the top U.S. domestic independent gas producers. With a successful first well, the expectation is that lower risk, follow-on production drilling will be required to develop what could be a world-class gas field. Commercial success of Alligator Bayou could potentially transform Index into a much larger company."
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.