Index Oil and Gas announced that the HNH Gas Unit No. 1 well in the Supple Jack Creek Prospect located in Lavaca Country, Texas has reached a true vertical depth (TVD) of 15,000 feet. The spud took place on November 28, 2007.
HNH Gas Unit No. 1 targeted the Edwards Limestone Formation. Open hole logs indicate several zones that initially appear gas productive. As a result, Index has elected to participate in the operations to complete the well as proposed by the operator.
HNH Gas Unit No. 1 (formerly referred to as West 1) is part of the Company's planned higher impact drilling portfolio described in its Operations Summary and Outlook released on June 11, 2007. Index has a 26.6667% working interest (WI) in the well during drilling and completion and a 20% working interest in the project (approximately 14.02% net revenue interest). Index would participate in a second well in the project at a 26.6667% WI thereafter reducing to 20%.
The gas unit designated for the well covers 566.59 acres. However, the contract Area of Mutual Interest (AMI) for the prospect extends over a much larger area, of which approximately 5,000 gross and net acres are currently under lease. Index holds a 20% working interest in this acreage. If the completion operations are successful, follow-on wells are anticipated.
Lyndon West, CEO of Index, stated, ``Initial data from the well appears encouraging and we look forward to the results of the testing operations. Investors should note the acreage position related to this prospect as it provides significant room for additional wells within the AMI assuming a success case test.''
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