HOUSTON, June 25, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or the "Company") announced today the Company's financial results for the Fiscal Year ended March 31, 2007. In its Annual Report on Form 10-KSB (the "Annual Report"), filed on June 22, 2007 with the Securities and Exchange Commission, the Company also discusses the phases of its growth strategy, emphasizing the addition of potential high impact wells to its current portfolio of prospects.
Oil and gas sales rose to $457,046 for the fiscal year ended March 31, 2007 (the "FY 2007") as compared to $191,114 for the fiscal year ended March 31, 2006 (the "FY 2006"). The increase in oil and gas sales was primarily due to the increase in production volumes of 4.655 MBoe from 3.420 MBoe in the FY 2006 to 8.075 MBoe in FY 2007. The increase is primarily due to production in FY 2007 from the Walker well of 3.713 MBoe and the Vieman well of 0.841 MBoe. Additionally, revenue increased slightly due to higher commodity prices as our average price per Boe increased by $0.71, or 1.0%, in 2007 to $56.60 per Boe in the FY 2007 from $55.89 per Boe in the FY 2006.
Net loss for the FY 2007 was $(2.226 million) as compared to $(1.691 million) for the FY 2006. The loss for FY 2007 includes $0.875 million of non-cash stock based compensation costs. Prior to this non-cash expense, the loss for the FY 2007 was $1.350 million. Contributing to the net loss were increased costs of operating as a public company for an entire fiscal year as well as higher operating costs and depletion on increased production offset by an increase in interest income on available cash from additional fund raisings.
Lyndon West, CEO of the Company, stated, "This is our first full year of being a public company and we are very pleased with the progress the Company has made. The Annual Report provides a fully detailed account of our finances for fiscal years ended March 31, 2007 and 2006. As described in our Operations Summary and Outlook released earlier this month, we had a 69% success rate in Fiscal Year 2007, annual production increased by 136%, and reserves increased by 93%. Going forward we expect substantially increased revenue flow from the successful wells drilled during Fiscal Year 2007, including Vieman 1, Hawkins 1, and the Serrano and Habanero wells located in Victoria and Goliad Counties in south Texas."
Mr. West continued, "We are especially pleased to report to our shareholders the advances of the Company's business strategy. Having completed initial phases, the Company has now entered its most exciting phase of development. Our strong portfolio of drilling prospects in FY 2008 includes a larger proportion of potential high impact wells. These wells, if successful, can deliver much higher value, volume and follow-on drilling with the potential of exponential growth. Going forward, our strategy is to increase shareholder value by profitably increasing reserves, production, cash flow and earnings through a balanced risk and equity program of exploration and production drilling."
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.
INDEX OIL AND GAS, INC.
CONSOLIDATED STATEMENT OF LOSSES
FOR THE YEARS ENDED MARCH 31, 2007 AND 2006
2007 2006
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Revenue:
Oil & gas sales $ 457,046 $ 191,114
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Operating Expenses:
Operating costs 114,735 41,953
Depreciation and amortization 189,379 71,571
Impairment -- 10,000
General and administrative expenses 2,723,235 1,746,101
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Total Operating Expenses 3,027,349 1,869,625
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Loss from Operations (2,570,303) (1,678,511)
Other Income (Expenses) -- (43,234)
Interest income 344,646 30,939
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Total Other Income (Expense) 344,646 (12,295)
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Loss before Income Taxes (2,225,656) (1,690,806)
Income Taxes Benefit -- --
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Net Loss $ (2,225,656) $ (1,690,806)
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Loss per share :
Basic and assuming dilution $ (0.03) $ (0.08)
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Weighted average shares outstanding:
Basic and assuming dilution 65,623,189 22,391,357