HOUSTON, Oct. 18, 2006 (PRIMEZONE) -- Index Oil and Gas Inc. ("Index", "the Company") (OTCBB:IXOG) today announced that the Vieman 1 well has spudded.
Vieman 1 is located in Brazoria County, Texas and forms part of the Company's Phase 2 portfolio of prospects.
As announced on July 18, 2006, Index's Working Interest ("WI") in Vieman 1 was increased from 12.5% to 17% following a positive review of the prospect.
As a result of recent negotiation Index has further increased its WI in Vieman 1 from 17% to 19.5%. This increase reflects Index's carefully risked view of the prospect and the additional resources available to the Company.
Drilling is anticipated to take around three to four weeks to reach the planned total depth of 10,600 feet.
In the event of commercial success, Vieman 1 will incrementally add to Index's production and assets. This is in line with the Company's strategy to rapidly build a balanced portfolio of producing assets, without exposing investors to single critical events. Like all other Index wells, Vieman 1 is just part of this balanced portfolio approach to building value, designed to mitigate the inherent risks of exploration.
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. 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.