HOUSTON, Feb. 5, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that the George Cason 2 well ("Cason 2") in the Fern Lake area of Nacogdoches County, Texas, has been hooked up to the sales pipeline network and is flowing at an initial rate of approximately 600 MCFPD (thousand cubic feet per day) from the Travis Peak section, using a 14/64ths choke.
In addition, drilling has begun on the Cason 3 well. The spud took place on February 2, 2008 and is expected to reach a prognosed total depth of 11,150 feet in the Travis Peak section. The well is designed to test the Glen Rose, James Lime, and Pettet intervals plus the Upper and Lower Travis Peak sand sections and will take approximately 21 days to drill.
Both wells follow on the success of Cason 1, which came on line December 13, 2007 and, following some operational procedures, has achieved a stabilised rate of 550 MCFPD (thousand cubic feet per day) from the Travis Peak section using a 14/64ths choke.
Index has a 24% working interest before payout and an approximate 18% working interest after payout in all three wells.
The Cason wells are part of the Company's Fiscal Year 2008 higher impact portfolio.
Lyndon West, CEO of Index, commented, "First gas sales on Cason 2 delivers on our objective to invest in projects with additional drilling opportunities. We are pleased with the success of the Cason 1 and 2 wells from a results, timing and cost perspective and look forward to drilling Cason 3. We will also be working with the operator and our partners to exploit further new drill opportunities within our lease position and evaluate and potentially exploit additional reserves within existing well bores."
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 receive email updates about the company and to be added to Index Oil and Gas, Inc. investor lists, please sign up at www.CFSG1.com or contact Adam Brooks at abrooks@cfsg1.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.