Index Oil Successful at Outlar

Index Oil and Gas Inc. announced that initial test results for the Outlar 1 well in the West Wharton prospect located in Wharton County, Texas, achieved test flow rates of approximately 1.6 MMcf/d and 77 b/p of condensate using a 7/64ths choke.

It is anticipated that Outlar 1 will start production and begin flowing into the local pipeline grid during the 4th quarter 2007.

Outlar is the third well drilled from the company's higher impact portfolio in the fiscal year ending March 31, 2008. Index has a 12.5% working interest for all costs associated with drilling the initial test well on the prospect to first production. It will thereafter have a 10.9% 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%.

"This is a very pleasing result for Index and an important affirmation of our growth strategy," said Lyndon West, CEO of Index. " We anticipate that, subject to the performance and evaluation of this well, there will be additional follow-on wells in the project.''