HOUSTON, Dec. 4, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that initial drilling has begun on the HNH Gas Unit No. 1 well ("HNH Gas Unit") in the Supple Jack Creek Prospect in Lavaca County, Texas. The spud took place on November 28, 2007.
HNH Gas Unit (formerly referred to as West 1) is part of the Company's planned higher impact drilling portfolio described in its Operations Summary and Outlook released on June 11, 2007. Index has a 26.6667% working interest in the well during drilling and completion and a 20% working interest in the project thereafter (approximately 14.02% net revenue interest).
HNH Gas Unit No. 1 is expected to take approximately one month to drill to a planned total depth of around 15,000 feet. The well targets the Edwards Limestone Formation. The gas unit designated for the well covers 566.59 acres. However, the contract Area of Mutual Interest (AMI) for the prospect extends over a much larger domain, approximately 5,000 gross and net acres of which are currently under lease. Index holds a 20% working interest in this acreage. If the well is successful, a number of follow-on wells are anticipated.
Successful Edwards Limestone wells in adjacent fields in Lavaca County have achieved reserves in the neighborhood of 4 BCF, whilst that is not necessarily indicative of what can be expected in the exploratory HNH Gas Unit No. 1 well.
Lyndon West, CEO of Index, stated, "The spud of the first well in the Supple Jack Creek prospect has exciting potential for Index. We have a meaningful position in this project and success in HNH Gas Unit 1 could lead to a significant number of follow-on locations commensurate with the land position. This continues our strategy of participating in projects that could significantly impact our reserves and production base."
About Index Oil and Gas Inc.
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 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.