Index Reports First Gas Sales, Start of Drilling in East Texas

Index Oil and Gas, Inc. reported that the George Cason 2 well in the Fern Lake area of Nacogdoches County, Texas, has been hooked up to the sales pipeline network and is flowing at an initial rate of approximately 600 MCFPD (thousand cubic feet per day) from the Travis Peak section, using a 14/64ths choke.

In addition, drilling has begun on the Cason 3 well. The spud took place on February 2, 2008 and is expected to reach a prognosed total depth of 11,150 feet in the Travis Peak section. The well is designed to test the Glen Rose, James Lime, and Pettet intervals plus the Upper and Lower Travis Peak sand sections and will take approximately 21 days to drill.

Both wells follow on the success of Cason 1, which came on line December 13, 2007 and, following some operational procedures, has achieved a stabilized rate of 550 MCFPD (thousand cubic feet per day) from the Travis Peak section using a 14/64ths choke.

Index has a 24% working interest before payout and an approximate 18% working interest after payout in all three wells.

The Cason wells are part of the Company's Fiscal Year 2008 higher impact portfolio.

Lyndon West, CEO of Index, commented, "First gas sales on Cason 2 delivers on our objective to invest in projects with additional drilling opportunities. We are pleased with the success of the Cason 1 and 2 wells from a results, timing and cost perspective and look forward to drilling Cason 3. We will also be working with the operator and our partners to exploit further new drill opportunities within our lease position and evaluate and potentially exploit additional reserves within existing well bores.''