Index Takes Increased Equity in Exploration Wells

Index Oil and Gas, Inc. said that it has signed contracts to increase its equity interest in two exploration wells already signed with a partner.

Index previously held interests in four wells to be drilled in Louisiana and South Texas during 2006 under a joint operating agreement with the Crawford Operating Co. One of these, Walker No. 1, has already been drilled successfully and the construction of the production pipeline is nearing completion. First production from Walker No. 1 is expected by the end of this month.

Having reviewed the prospects for the remaining three wells, Index has elected to increase its equity in two of them:

--Vieman No. 1; originally 12.5%, now increased to 17%
--Taffy No. 2; originally 7.5%, now increased to 20%

In the event of commercial success, and these wells being put into production, this increased equity would have the effect of enhancing near-term revenues for Index from these prospects.

Vieman No. 1 has an anticipated spud date in September 2006. Taffy No. 1 (where Index's equity remains at 7.5%) and Taffy No. 2 (with the increased 20% equity) will be drilled in late Q3 or early Q4 2006.

Index is a gas-biased oil and gas exploration and production company, with activities in Kansas, Texas, and Louisiana. It has offices in Houston, Texas, and Bath, U.K. Index is focused on efficiently building a broad portfolio of producing properties with what it believes to be significant upside potential. It intends to grow its existing asset base and revenues through further investment in the U.S. The company seeks to develop its activities in areas containing prolific petroleum systems set in stable political and economic environments.