Index Signs West Wharton Agreement

Index Oil and Gas, Inc. has signed a participation agreement to explore for gas in the West Wharton Project, which could comprise four exploration wells within the area of mutual interest in Wharton County, Texas.

Index has a 12.5% working interest in the project that will reduce to 9.375% after payout. The first well is planned to spud during the third calendar quarter of 2007. The well will target the Middle Cook Mountain reservoir and has a planned total depth of approximately 12,000 feet. Subsequent wells are expected to be drilled given encouraging results from the first well.

Lyndon West, CEO of Index, commented: "The Company's participation in West Wharton continues the objective for Index to invest in projects that have greater upside potential with an acceptable risk profile without exposing investors to single critical events. In fiscal year ending 31 March 2007, Index drilled a number of lower risk and reward prospects designed to generate near-term reserves and production. Going forward, the fiscal year ending 31 March 2008 portfolio includes a number of significant higher impact wells. West Wharton is one of the higher impact opportunities about which I am particularly excited, both for the company and our shareholders."

Index is pleased to participate in West Wharton as it continues to expand its network of working relationships with experienced operators in high quality opportunities that could have a significant impact on Index's revenue in the event of success.

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.