HOUSTON, Oct. 16, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that initial test results for the Outlar 1 well ("Outlar") in the West Wharton prospect located in Wharton County, Texas, achieved test flow rates of approximately 1.6 million cubic feet of gas per day (mmcfpd) and 77 barrels of condensate per day (bcpd) using a 7/64ths choke.
It is anticipated that Outlar 1 will start production and begin flowing into the local pipeline grid during the 4th quarter 2007.
Outlar is the third well drilled from the Company's higher impact portfolio in the fiscal year ending March 31, 2008. Index has a 12.5% working interest for all costs associated with drilling the initial test well on the prospect to first production. It will thereafter have a 10.9375% working interest in this well and in any other wells drilled on the prospect before prospect payout. After payout of the prospect, Index's working interest will reduce to 9.375%.
Lyndon West, CEO of Index, stated, "This is a very pleasing result for Index and an important affirmation of our growth strategy. We anticipate that, subject to the performance and evaluation of this well, there will be additional follow-on wells in the project. The successes at Cason (announced September 18, 2007) and Outlar give us running room for additional wells which will in a success case add incremental volumes and production potential which has been a key objective for the 2008 portfolio."
About Index Oil and Gas
Index is a gas-biased oil and gas exploration and production company, with activities primarily in Texas, Louisiana, and Kansas and headquarters in Houston, Texas. Index is focused on efficiently building a broad portfolio of producing properties that it believes to have significant upside potential. The Company has an enviable drilling record and intends to grow its existing asset base and revenues through further investment in the U.S. Index 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 Inc. (OTCBB: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.