HOUSTON, June 26, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. ("Index", the "Company") (OTCBB:IXOG), today announced that the Company has entered into Participation and Joint Operating Agreements for the drilling of the Cow Trap project ("Cow Trap") to be located in Brazoria County, Texas.
The Cow Trap well, named Ducroz 1, targets gas in stacked Miocene objectives at depths ranging from 4,900 feet to 6,400 feet. The well has a planned total depth of approximately 6,800 feet.
Ducroz 1 is to be drilled into a gas-bearing four-way dip structure defined by 2D seismic and offset well data. Two down-dip wells drilled into the same structure have produced 24.4 BCF of gas from stacked Miocene reservoirs (13.1 BCF and 11.3 BCF, respectively). This equates to approximately 4.1 million barrels of oil equivalent.
The Cow Trap structure has Proved Undeveloped Reserves ("PUDs") estimated by a third party at 4.1 BCF gross, equating to 0.213 BCF at Index's net revenue interest.
Ducroz 1 is expected to be spudded during the second half of 2007 and to take approximately one month to drill. Index has a 7.5% working interest in project.
Lyndon West, CEO of Index, stated, "Cow Trap typifies the category of relatively low risk well that Index uses to balance risk elsewhere in our expanding portfolio of wells. Given the low risk profile and nearby successful analogs with excellent cumulative production, Cow Trap is a very attractive well for Index."
About Index Oil and Gas Inc.
Index is a gas-biased oil and gas exploration and production company, with activities in Kansas, Texas, Louisiana, Mississippi and Alabama. It has offices in Houston, Texas and Bath, England. Index is focused on efficiently building a broad portfolio of producing properties that it believes to have significant upside potential. The Company has an enviable drilling record and intends to grow its existing asset base and revenues through further investment in the U.S. Index seeks to develop its activities in areas containing prolific petroleum systems set in stable political and economic environments. To learn more about Index Oil and Gas Inc., visit our website at http://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 we believe 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.