Index Reports Vieman 1 Start-up

Index Oil and Gas, Inc. on Wednesday announced the Vieman 1 production well was successfully drilled and encountered gas-bearing pay zones in its Frio reservoir targets.

The well, located in the Manor Lake area of Brazoria County, Texas, encountered multiple gas pays. The hydrocarbon-bearing interval currently being tested is between the measured depth of 11,180 feet and 11,320 feet and is estimated to contain a total of 16 feet of net pay. A test was conducted in the lower part of the interval that flowed at a rate of 2.83 million cubic feet of gas and 25 barrels of condensate per day, or roughly 497 barrels of oil equivalent on a 10/64 inch choke with a flow tubing pressure of 3,808 pounds per square inch.

A long-term test of the reservoir from the lower part of the currently producing interval in the Vieman 1 production well has produced gas since February 12, 2007 following the installation of a 6,300 feet flow line from the well to the local pipeline grid. Through 21 days of production, 18.3 million cubic feet of gas and 127 barrels of condensate have been produced.

The operator is planning a pressure build-up test to aid in planning the next steps in testing and completion of the rest of the interval.

Additional potential gas pay above 11,000 feet has also been identified in the well and is expected to be tested at a later date.

Index's March 31, 2006 external reserves audit classified the Vieman 1 gas as Proved Undeveloped reserves. Index will continue to evaluate the Vieman 1 reserves as additional data becomes available. The reserves will be updated in the March 31, 2007 external reserves audit and reported as soon as the audit is completed.

Index has a 19.5% working interest in the Vieman 1 well.

Lyndon West, CEO of Index Oil and Gas said, "Vieman appears to be another successful well. With the Company continuing to drill its portfolio wells, including some larger prospects, I look forward to updating shareholders on progress in the coming months.''

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. Index is focused on efficiently building a broad portfolio of producing properties with what it believes to be significant upside potential and 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.