Index Spuds George Cason 2 Well

Index Oil and Gas says that drilling has begun on the George Cason 2 well in the Fern Lake Prospect in Nacogdoches County, Texas. The spud took place on November 16th, 2007. The well reached the 9 5/8" casing point at 3100ft and is currently drilling ahead at 3248ft.

Lyndon West, CEO of Index, stated, "The commencement of drilling on the George Cason 2 well clearly demonstrates the Company's objective of investing projects with the potential for follow on drilling. Success in the second well could lead to further drilling on the unit."

Cason 2 is expected to take approximately one month to drill to a planned total depth of around 10,500 feet. The well targets gas in the Lower Cretaceous Travis Peak sandstone, with shallower secondary objectives targeted at the Rodessa, James Lime and Pettet intervals. Index has a 24% working interest before payout and 18% working interest after payout.

As reported in the Company's release of November 16, 2007, the Cason 1 well, which achieved a maximum flow rate of 1.168 mmcfpd (million cubic feet of gas per day), is expected to deliver first gas sales by December 31, 2007.