HOUSTON, Jan. 9, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that the HNH Gas Unit No. 1 well in the Supple Jack Creek Prospect located in Lavaca Country, Texas has reached a true vertical depth (TVD) of 15,000 feet. The spud took place on November 28, 2007.
HNH Gas Unit No. 1 targeted the Edwards Limestone Formation. Open hole logs indicate several zones that initially appear gas productive. As a result, Index has elected to participate in the operations to complete the well as proposed by the operator.
HNH Gas Unit No. 1 (formerly referred to as West 1) is part of the Company's planned higher impact drilling portfolio described in its Operations Summary and Outlook released on June 11, 2007. Index has a 26.6667% working interest (WI) in the well during drilling and completion and a 20% working interest in the project (approximately 14.02% net revenue interest). Index would participate in a second well in the project at a 26.6667% WI thereafter reducing to 20%.
The gas unit designated for the well covers 566.59 acres. However, the contract Area of Mutual Interest (AMI) for the prospect extends over a much larger area, of which approximately 5,000 gross and net acres are currently under lease. Index holds a 20% working interest in this acreage. If the completion operations are successful, follow-on wells are anticipated.
Lyndon West, CEO of Index, stated, "Initial data from the well appears encouraging and we look forward to the results of the testing operations. Investors should note the acreage position related to this prospect as it provides significant room for additional wells within the AMI assuming a success case test."
About Index Oil and Gas
Index Oil and Gas, Inc. is a dynamic gas-biased oil and gas exploration and production Company, with onshore activities primarily in Texas, Louisiana, and Kansas and offices in Houston. The Company's goal is to generate increasing reserves and cash flow from a portfolio of moderate and higher risk potential prospects. After successfully focusing on lower risk prospects to build reserves and near term cashflow in Fiscal Year 2007 (ended March 31, 2007), Index has embarked upon a drilling program in Fiscal Year 2008 of a balanced, risk-managed portfolio of prospects designed to generate significantly higher reserves and production. The Company has an enviable drilling record and intends to grow its existing asset base and revenues through further investment in the U.S.
To find out more about Index Oil and Gas Inc. (OTC BB: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 September 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.