Index Oil and Gas Spuds the Outlar 1 Well on West Wharton Prospect

Index Oil and Gas has begun drilling on the Outlar 1 well in the West Wharton Prospect located in Wharton County, Texas. The spud took place on August 12, 2007.

Outlar 1 is the third well that has spudded during Index's new fiscal year ending March 31, 2008. Index has a 12.5% working interest for all costs associated with drilling this initial test well on the prospect to first production. It will thereafter have a 10.9375% working interest in this well and in any other wells drilled on the prospect before prospect payout. After payout of the prospect, Index's working interest will reduce to 9.375%.

Outlar 1 has a planned total depth of approximately 12,000 feet and targets gas in the Cook Mountain formation. The well is located near the town of Wharton.

Lyndon West, CEO of Index, stated, "The spudding of Outlar 1 is an important part of Index's fiscal year 2008 drilling program and occurred ahead of our expected schedule. Having 3 High Impact wells simultaneously drilling or completion during this period (including George Cason 1 and Shadyside) makes it an extremely exciting time for us. Subsequent wells on this West Wharton Prospect are anticipated, should we get encouraging results from this initial test well."