HOUSTON, Dec. 8, 2006 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. ("Index", "the Company") (OTCBB:IXOG), today announced that the Ilse 1 well in the New Taiton Project located in South Texas has spudded. (Ilse 1, a relatively large prospect for Index, was announced as signed on September 19 2006.)
Ilse 1 targets stacked Wilcox sands on trend with nearby gas fields typically with cumulative production in the 30 billion cubic feet of gas or 5 million barrels of oil equivalent range from the same reservoirs.
The prospect is clearly identified by 3D seismic data and shows strong seismic attributes corresponding with the mapped structural closure. Ilse 1 has a proposed Total Depth (TD) of around 17,000 feet and drilling results are expected during the first quarter of calendar year 2007.
If Ilse 1 proves successful the Company expects to participate in further wells to develop the potential of the New Taiton area. As such, Ilse 1 could, in a success case, lead to Index's participation in what will be a significant field development for the Company.
Index has taken a 10% Working Interest before pay out equating to an 8% interest after payout in Ilse 1. This prudent Working Interest is in line with the Company's strategy to rapidly build a balanced portfolio of producing assets, without exposing investors to single critical events.
About Index
Index is a gas biased oil and gas exploration and production company, with activities in Kansas, Texas, Louisiana, Mississippi and Alabama. 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. Although we believe 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. Index Oil and Gas, Inc. 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.