HOUSTON, Feb. 12, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that the Ducroz 1 well ("Ducroz") in the Cowtrap prospect, located in Brazoria County, Texas, has been hooked up to the sales pipeline network. The well is flowing from two intervals; the lower interval is flowing through tubing at a stabilized rate of 1.46 MMCFPD (million cubic feet per day); while the upper interval is flowing through casing at a stabilized rate of 1.49 MMCFPD using a 8/64th choke. The well is also flowing a small amount of water at a combined rate of approximately 2.5 bwpd (barrels of water per day). The combined gas flow rate is approximately 2.95 MMCFPD.
Ducroz (originally defined as a production well) is the fifth well drilled from the Company's portfolio in the Fiscal Year ending March 31, 2008. Index has a 7.5% working interest and a 5.25% net revenue interest.
Lyndon West, CEO of Index, stated, "Index has now delivered positive drilling results and hook ups for the Cason 1 and 2, Outlar, Shadyside and Ducroz wells this fiscal year. These wells, drilled in the 2008 Fiscal Year, have only recently been hooked up to sales. Consistent with this, production for the quarter ended December 31, 2007 only shows a modest increase from previous quarters, but a significant revenue increase is anticipated for the fourth quarter of the 2008 Fiscal Year. Subject to operational conditions, the Company continues to anticipate achieving the important breakeven position for cash flows from operating activities in the near future."
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 & 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.