HOUSTON, Jan. 11, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that the Shadyside 1 well ("Shadyside") located in Saint Mary's Parish, Louisiana has been hooked up to the sales pipeline network and is flowing at an initial rate of approximately 1.6 million cubic feet of gas per day (mmcfpd) and 136 barrels of condensate per day (bcpd) using a 6/64ths choke. The operator plans to increase production rates gradually until a stabilized optimal rate based on reservoir performance is achieved.
Shadyside is the fourth successful well from the Company's higher impact portfolio for the fiscal year ending March 31, 2008. After drilling the well, and before completion operations commenced, Index took the opportunity to increase its 15% working interest (13.5% After Pay Out, "APO") to 30% WI (27% APO). Index currently has an approximately 21.15% net revenue interest (NRI) in the well (approximately 19.04% NRI APO).
The Company also announced today that the Hawkins 1 well ("Hawkins") in the Taffy area of Matagorda County, Texas (formerly named Taffy 1), has been hooked up to the sales pipeline network and is flowing at an initial rate of approximately 0.55 million cubic feet of gas per day (mmcfpd). Index has an approximately 10.01% net revenue interest in well.
Lyndon West, CEO of Index, stated, "Shadyside is a significant well for Index, and we are pleased to report that the initial test results and flow rates to sales are very encouraging. If sustained, this will add significantly to the company's production and revenue. The well will also add to the Company's reserves, which will be audited at fiscal year end. The Hawkins well has also finally come on stream following some frustrating operational and weather delays in South Texas."
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 learn more about Index Oil and Gas, (OTCBB:IXOG) please visit the Company's Web site at www.indexoil.com. To sign up to receive news about the company as it becomes available, please contact Adam Brooks at abrooks@cfsg1.com or at 1-800-625-2236.
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.