HOUSTON, March 4, 2008 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or the "Company") today announced it has filed the Company's unaudited financial results for the third Fiscal Quarter ended December 31, 2007 ("Q3 FY 2008", "the quarter"). Form 10-Q ("Quarterly Report") was filed on February 14, 2008 with the Securities and Exchange Commission. The Company's fiscal year ("FY") 2008 ends March 31, 2008.
Highlights for the quarter include a continued increase in production volumes, with the Outlar 1 well coming into production towards the end of the period, in mid December.
Lyndon West, CEO of the Company, stated, "Recently Index has made significant progress in our FY 2008 drilling program, including results beyond those reported for the third quarter. These recent results include:
* Ongoing gas and condensate sales from the Outlar well, first announced on December 18, 2007 * First gas and condensate sales from Shadyside, our largest prospect to date, announced January 11, 2008 * First gas sales from Cason 2 well, a follow-on to the earlier success of Cason 1, announced February 12, 2008."
In addition, Mr. West noted, "On February 28, 2008, the Company completed a private placement of $2.77 million and appointed a Senior Vice President of Exploration and Production to direct our expanding drilling portfolio. As a policy, Index does not publish reserves figures until third-party audited numbers become available. However, based on current data, we fully expect a notable increase in reserves and production when this fiscal year ends March 31, 2008."
Results reported in the Quarterly Report for Q3 FY 2008 are as follows:
Oil and gas sales were $185,314 for the third quarter of the Company's fiscal year 2008 ending March 31, 2008 and $474,263 for the nine months to December 31, 2007, compared to $131,976 and $305,787 respectively for the equivalent periods in the previous fiscal year. Gas production for the quarter was more than three times that of oil production, on an energy equivalent basis.
The increase in oil and gas sales over the comparative quarter reflected an increase in production volumes of 9.5 MMcfe (million cubic feet of gas equivalent), from 14.4 MMcfe in Q3 FY 2007 to 23.9 MMcfe in Q3 FY 2008. The increase was primarily due to production from the Schroeder and Friedrich wells, together with new production from Outlar 1, offset by lower volumes on other wells. Additionally, revenues reflected lower average commodity prices as our average price per Mcfe (thousand cubic feet of gas equivalent) decreased by $1.42 in the quarter to $7.73 per Mcfe from $9.15 per Mcfe in Q3 FY 2007, reflecting the increased gas volumes within the production mix. The average gas sales price in the quarter was $7.10 per Mcf (thousand cubic feet of gas).
Net loss for Q3 FY 2008 was $(0.526 million) as compared to $(0.422 million) for Q3 FY 2007. The loss for the quarter includes $0.063 million of non-cash stock based compensation costs. Commensurate with increased production volumes, production expenses and depletion costs were higher, and also general and administrative costs were higher and interest income on cash balances lower compared to the previous year.
The Company invested $2.063 million and $6.430 million in capital expenditures in the quarter and nine months to December 31, 2007, respectively, principally on its oil and gas properties.
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 website 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 services, for which CFSG1 receives cash and/or stock compensation.