Index Reports First Gas from South Texas Well

Index Oil and Gas, Inc. on Thursday announced that the Company's Serrano gas discovery began producing on May 2, 2007, at a rate of 250 thousand cubic feet of gas per day (MCFGPD).

The shut-in tubing pressure (SITP) and flowing tubing pressure (FTP) were 1,250 pounds per square inch (PSI) of dry gas. Over the first 14 days of production the average production rate was 275 MCFGPD through a 6/64-inch choke.

The Serrano discovery, renamed Friedrich Gas Unit 1, is in Victoria County, Texas. Index has a 37.5% working interest and a 28.125% net revenue interest in this well.

Lyndon West, CEO of Index, commented: "Our relatively large net revenue interest in this successful well will contribute significantly to the Company's cashflow. I look forward to announcing the commencement of further production from recent discoveries in the near future.''

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.