HOUSTON, June 30, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas Inc. (OTCBB:IXOG) (``Index'' or the ``Company'') today announced a quarterly Operations Update for the first quarter of its Fiscal Year ending March 31, 2009, and Reserve Adjustment for its Fiscal Year ended March 31, 2008. The Company's first quarter for Fiscal Year 2009 ended on June 30, 2008.
Supple Jack Creek Prospect
The Company is awaiting further completion recommendations from the operator following testing operations on the HNH #1 lateral which achieved a measured TD of 16,062ft.
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.
Alligator Bayou Prospect
Operations continue on Armour Runnells #1. The well is currently at an intermediate casing point and conducting casing operations.
Kansas
Index recently participated in two wells in the Katy area of Barton County. The Miller-McReynolds Unit #1-17 well is now a producing well. The Salem #1-8 well is currently being completed as a potential producer.
West Wharton Prospect
The Stewart #1 well reached a TD at 11,922ft on June 6. The targeted reservoir section was penetrated and contained gas-bearing intervals which were deemed to be sub-commercial. The well is now testing a shallower sand interval that appears to be gas-productive.
Reserve Adjustment
The Company has adjusted its proven reserve estimate as of March 31, 2008. Reserves are now reported to have increased approximately 100% from 114,578 boe (barrels of oil equivalent) of proven reserves as of March 31, 2007 to 219,469 boe of proven reserves as of March 31, 2008 (having taken into account production in the year of 28,626 boe). These reserve numbers are based on independent engineering reports as of the dates indicated and prepared in accordance with SEC standards.
Lyndon West, CEO of Index, commented, "Activity continues on a number of our projects along with our stated aim to pursue appropriate opportunities to acquire or merge with businesses that share Index's risk-balanced approach to drilling, and whose assets will enhance the Company's growth and shareholder value".
The adjustment to year end reserves was caused by activity and information received subsequent to Fiscal Year 2008 year end and prior to filing the Company's Form 10-K Report. The effect has been to increase the reserves in the PDP (Proven Developed Producing) category and decrease those classified as PBP (Proven Behind Pipe). Data and information are still being received and management's initial opinion is that further reserves may be added to the PDP category from this adjustment in due course. Furthermore, the Company's FY '09 drilling program targets unrisked volumes of 2.53 mmboe (management estimate).
About Index Oil and Gas
Index Oil and Gas Inc. (OTCBB:IXOG) is a dynamic oil and gas exploration and production company, with 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 cash flow in FY 2007 (ended March 31, 2007), Index embarked upon a drilling program in FY 2008 of a balanced, risk-managed portfolio of prospects designed to generate significantly higher reserves and production. The Company has a successful 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 http://www.indexoil.com. To receive news about the company as it becomes available, please contact Adam Brooks at abrooks@cfsg1.com or 1-800-625-2236.
The statements in this 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. This document may also contain other "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. Because 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 the 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.
For a description of risks and other factors that may affect the Company's results of operations and financial performance, see the Company's reports filed with the Securities and Exchange Commission, including the Company's annual report on Form 10-KSB for the fiscal year ended March 31, 2007 and the Company's quarterly reports on Forms 10-Q, copies of which may be obtained from the SEC's web site at http://www.sec.gov.