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Index Oil and Gas Inc. (IXOG.OB) Indexed for Future Growth

Originally incorporated in the U.K. in 2003, Index Oil and Gas Inc. is an early stage oil and gas exploration and production company. Trading on the OTCBB, they have a current market capitalization of $34.32 million. The company has their head office in Houston, Texas, as well as an office in Bath, England. Their oil and gas prospects are in Texas, Louisiana, and Kansas.

In 2007, Index successfully focused on lower-risk properties to build reserves and near-term cash flow. For fiscal year 2008, Index focused on a balanced and risk-managed portfolio of prospects. The goal was to increase their reserves and production, and their efforts did pay off. Fiscal year 2008 saw the company’s revenue up 273 percent over the previous fiscal year. In addition, production was up 255 percent and reserves were up 100 percent in fiscal year 2008.

The company’s new stage of development is higher-impact wells comprising the major portion of their drilling portfolio. Index’s management goal is also to pursue opportunities to acquire or merge with businesses that share their business model of a risk-balanced approach to drilling opportunities. The company seeks to generate increasing reserves and cash flow from a portfolio of moderate and higher-risk potential prospects.

In fiscal year 2008, Index Oil and Gas drilled six out of the seven wells they planned. They currently have four producing wells. One of these is in Wharton, Texas, one is in Nacogdoches, Texas, and another is in Brazoria, Texas. Their fourth producing well is in Saint Mary Parish, Louisiana. The company has various percentages of working interest in these producing wells. Index has an interest in 23 producing wells in Kansas, as well.

The company also has further exploration plans. For fiscal year ending March 31, 2009 the company is funded to participate in explorations in Alligator Bayou, a high impact exploration prospect in Matagorda County, Texas. They plan also to participate in a West Wharton project – a low-risk, multiple prospect play, in Wharton County, Texas. The company is also planning further exploratory wells in Kansas.

Index recently announced their unaudited financial results for the first Fiscal Quarter ended June 30, 2008. Oil and gas sales revenues were $1,429,077 for the first quarter of their fiscal year 2009, compared to $151,373 for the equivalent period in the previous fiscal year. Gas production for the quarter provided 83 percent of total production, on an energy equivalent basis. Index Oil and Gas Inc. continues to explore and produce to further shareholder growth.

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