Index Reports New Taiton Drilling

Index Oil and Gas, Inc. on Friday announced that the Ilse 1 well in the New Taiton Project located in South Texas has spudded. A relatively large prospect for Index, Ilse 1 was announced as signed on September 19 2006.

Ilse 1 targets stacked Wilcox sands on trend with nearby gas fields typically with cumulative production in the 30 billion cubic feet of gas or 5 million barrels of oil equivalent range from the same reservoirs.

The prospect is clearly identified by 3D seismic data and shows strong seismic attributes corresponding with the mapped structural closure. Ilse 1 has a proposed total depth (TD) of around 17,000 feet and drilling results are expected during the first quarter of calendar year 2007.

If Ilse 1 proves successful the company expects to participate in further wells to develop the potential of the New Taiton area. As such, Ilse 1 could, in a success case, lead to Index's participation in what will be a significant field development for the company.

Index has taken a 10% working interest before pay out equating to an 8% interest after payout in Ilse 1. This prudent Working Interest is in line with the company's strategy to rapidly build a balanced portfolio of producing assets, without exposing investors to single critical events.

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.