Index Kicks Off Two-well Program in South Texas

Index Oil and Gas, Inc. on Wednesday announced that the Serrano Prospect in Victoria County, Texas, spudded on March 10, 2007, using the well name Friedrich Gas Unit 1.

The Serrano well is the first of a two-well, low-risk drilling program. The second of these, the Habanero well, in Goliad County, South Texas, is expected to be drilled immediately after Serrano. Both wells target gas in shallow Frio and Vicksburg reservoirs and have a planned total depth of 4,000 feet.

Results are expected to be announced by the end of May 2007.

The Habanero/Serrano program, if commercially successful, is expected to add incrementally to the Company's reserves and cashflow 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. 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.