HOUSTON, July 12, 2006 (PRIMEZONE) -- Index Oil and Gas, Inc. ("Index," "the Company") (OTCBB:IXOG), today announced that the Company has taken up its option to enter Phase II of the Seismic Reprocessing and Exploration Agreement (the "Agreement") signed with ADC (Advanced Drilling Concepts) Petroleum, LP ("ADC") and first announced on May 2, 2006.
-- Increase in area of Agreement
As a result of the exercise of the option Index will participate in a further 121 square miles of reprocessing analysis and interpretation of 3D seismic data in onshore Texas and onshore in the border area of Mississippi and Alabama. Index has the option to take up to a 12.5% working interest in any prospects generated in these additional areas (105 square miles are already signed at an 18% working interest option). This brings the total area of the Agreement to 226 square miles of existing 3D seismic data, which is already available to ADC.
-- Index to participate in first well with ADC
ADC has leased an area in Nacogdoches County in East Texas and identified its first drillable prospect with a planned TD (Total Depth) of 11,600 ft.
Index has elected to take up its option for its full 18% participation in the prospect. This well is expected to spud in October / November with an estimated drilling time to TD of around 30 days.
More information on the original Agreement and ADC is available here: http://www.integratir.com/newsrelease.asp?news=2130955801&ticker=IXOG〈=EN
About Index
Index is a gas biased oil and gas exploration and production company, with activities in Kansas, Texas and Louisiana. It has offices in Houston, Texas and Bath, England. Index is focused on efficiently building a broad portfolio of producing properties with what it believes to be significant upside potential and intends to grow its existing asset base and revenues through further investment in the U.S. The company 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 (OTCBB:IXOG), visit our website at 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 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.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.