HOUSTON, Nov. 5, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) (``Index'' or ``the Company'') today released an operations activity update, reporting progress on five ongoing well operations, three of which are part of the Company's high-impact portfolio for Fiscal Year 2008.
Lyndon West, CEO of Index Oil and Gas, said, "We are pleased with the progress we are making in drilling and delivering our risk-balanced portfolio to market. We are encouraged to report that the Cason and Hawkins wells are close to completing pipeline connections to sales points. Assuming timely completion, these wells should be producing by the end of calendar 2007.
"In addition, follow-on wells are expected in both the Outlar and Cason prospects, which could add incremental volumes and production, key objectives for our 2008 portfolio. Drilling of the Cason 2 well is scheduled to start this month. Shadyside 1, the second largest prospect in our 2008 portfolio, is being prepared for production testing this month, potentially leading to early product sales. Index has doubled its working interest ("WI") in this well. We expect that success in these and other high-impact prospects will markedly increase the Company's reserves, production and revenue."
The operations update follows:
Hook up and pipeline operations:
Outlar 1 - West Wharton - Wharton County, Texas
The Outlar 1 well is currently shut in, awaiting pipeline connection. The proposed route to sales is approximately 2.1 miles from the well location. Construction of the line and hook-up to sales is planned prior to calendar year end. Additional drilling locations within the lease area are now being evaluated.
Cason 1 - Fern Lake - Nacogdoches County, Texas
Announced as a discovery on September 18, Cason 1 now has surface facilities in place and hooked up, and the well is awaiting final tap into the local pipeline network during November 2007. Furthermore, the operator has proposed a second well on the lease (Cason 2) which is scheduled to commence drilling operations during November 2007. Index has elected to participate in this second well.
Hawkins 1 - Taffy Area - Matagorda County, Texas
Construction work on the Hawkins 1 flowline was completed on October 4, 2007. This approximately 7000-foot line connects to an adjacent new pipeline that will carry the well's gas to the sales point. The adjacent new pipeline is undergoing testing prior to initial sales, which are expected shortly.
Testing operations:
Shadyside - St. Mary Parish, Louisiana
Shadyside 1, the second largest prospect in Index's 2008 portfolio, is being prepared for production testing during this month. Heavy rains in the area delayed the timing of operations by approximately one week. Index has increased its 15% working interest (13.5% After Pay Out, "APO") to 30% WI (27% APO). The well is being prepared for early product sales via a nearby pipeline connection.
Drilling Operations:
Kansas
Drilling operations are continuing in Kansas, where the Company announced a 14-well program on October 11, 2007. Operations have recently commenced on the third well in the program.
About Index Oil and Gas
Index Oil and Gas, Inc. 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 find out more about Index Oil and Gas Inc. (OTCBB:IXOG), visit our website at http://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.