HOUSTON, Dec. 20, 2007 (PRIME NEWSWIRE) -- Index Oil and Gas, Inc. (OTCBB:IXOG) ("Index" or "the Company") today announced that initial test results for the Shadyside 1 well ("Shadyside"), located in Saint Mary's Parish, Louisiana, achieved test flow rates of approximately 3 million cubic feet of gas per day (mmcfpd) and 200 barrels of condensate per day (bcpd) using a 7/64ths choke. The flowing tubing pressure was 8,900 PSI. The reservoir did not require any artificial stimulation.
It is anticipated that Shadyside 1 will start production and begin flowing into the local pipeline in the near future. The Company will update investors as this work progresses.
Shadyside is the fifth well drilled from the Company's higher impact portfolio in the fiscal year ending March 31, 2008. After drilling the well, and before completion operations commenced, Index took the opportunity to increase its 15% working interest (13.5% After Pay Out, "APO") to 30% WI (27% APO).
Lyndon West, CEO of Index, stated, "This is a significant and encouraging result for Index, from the initial test results, and is yet another example of how we continue to deliver on the milestones we set for ourselves and announced in June 2007. Shadyside can be added to initial success at Cason 1, Outlar 1 and Ducroz 1. The fifth well, Ilse 1, remains suspended pending further announcements."
Among the working interest partners is Century Petroleum Corp. (OTCBB:CYPE)
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 find out more about Index Oil and Gas Inc. (OTCBB:IXOG), visit our website at 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 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.