Index to Participate in Shadyside Prospect in South Louisiana

Index Oil and Gas, Inc. on Tuesday announced that it has contracted to participate in the Shadyside Prospect in St. Mary Parish, La.

Shadyside is Index's largest contracted prospect to date. Index will have an initial 15% working interest in the first exploration well, reducing to a 13.5% working interest in the event of success, after payout.

The first well will be drilled during the first half of 2007 with a planned total depth of approximately 16,500 feet. It will target multiple Miocene gas reservoirs in the bottom 1,500 feet of the well. Similar reservoir horizons have produced very significant quantities of gas -- over 2 trillion cubic feet (around a third of a billion barrels of oil equivalent) -- from the nearby Garden City Field.

Index's participation in Shadyside is in line with Index's strategy to include in its exploration portfolio potentially high impact wells that offer Index opportunities for significant upside results without exposing investors to single critical events. In its fiscal year ended March 31, 2007, the Company successfully drilled a number of lower risk and reward prospects that generated near-term reserves and production. In April 2007, Index announced its participation in the West Wharton Project in Wharton County, Texas. In May 2007, Index announced the successful production of Index's Serrano gas discovery, Friedrich Gas Unit 1, in Victoria County, Texas.

Lyndon West, CEO of Index, commented, "Shadyside offers significantly positive potential for Index in the event of success. It is our largest prospect contracted to date and advances our balanced portfolio approach to exploration. We are excited about participating in this project, which we believe will benefit the company and our shareholders."

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 that it believes to have significant upside potential.