HOUSTON, April 17, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or the "Company") today announced a quarterly Operations Update for the fourth quarter of its Fiscal Year ended March 31, 2008.
Supple Jack Creek Prospect
Initial drilling of the HNH Gas Unit #1 well ("HNH Gas Unit") in the Supple Jack Creek Prospect in Lavaca County, Texas, began in December 2007. This vertical well reached a total depth (TD) of 15,000 ft and was subsequently completed and tested from the Edwards Limestone Formation. The flow rates achieved were 0.6mmcfgpd (million cubic feet of gas per day) and 125 bwpd (barrels of water per day) through a 12/64" choke. The gas recovered also contained a small amount (approximately 8%) of CO2 (carbon dioxide).
Subsequently a lateral well has been drilled to a measured depth of 16,000 ft from the existing borehole in order to expose the optimum amount of formation (from regional analogies) to achieve a commercial producing well. The lateral achieved a measured TD of 16,062 ft (April 4, 2008) and is currently being tested.
Index has a 21.05% working interest in the well during drilling and completion and a 20% working interest in the project thereafter (approximately 14.02% net revenue interest).
The contract Area of Mutual Interest (AMI) for the prospect extends over approximately 5,000 gross acres which are currently under lease. Index holds a 20% working interest in this acreage.
Fern Lake Prospect (Cason)
After drilling, completing and hooking up the Cason #1 well, the Company has participated in the Cason #2 and the Cason #3 wells. All three wells have now been completed as producers in the Travis Peak Formation. The wells currently flow to a common sales point at 0.7mmcfgpd. Other potentially producing horizons are present in all three boreholes and a review will be undertaken of results and costs to date, prior to participating in any further completions, leasing or drilling in the area.
Index has a 25% working interest and 18.36% net revenue interest in the wells. The Fern Lake Area of Mutual Interest, in which Cason was drilled, covers 908 gross and 538 net acres.
Kansas
Index has recently participated in two wells in the Katy area of Barton County. The Salem #1-8 well is currently being completed as a potential producer while the Miller-McReynolds Unit #1-17 well is currently drilling. Index has a 3.25% working interest and 2.64% net revenue interest in the wells.
West Wharton Prospect
Following the successful drilling, completion and hook up of the Outlar #1 well, Index has agreed to participate in the second well in the area (Stewart #1), which should commence around April 29 and take approximately 30 days to reach TD.
Alligator Bayou Prospect
The first well on the Alligator Bayou prospect (Armour-Runnells #1) is schedule to spud in April. Site preparation is ongoing and the operator is awaiting the arrival of the rig. It is expected to take approximately six months to reach the proposed drill depth.
About Index Oil and Gas
Index Oil and Gas, Inc. (OTCBB:IXOG) 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 learn more about Index Oil and Gas, (OTCBB:IXOG) please visit the Company's Web site at www.indexoil.com. To sign up to receive news about the company as it becomes available, please contact Adam Brooks at abrooks@cfsg1.com or at 1-800-625-2236.
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.