Index Closing $2.77 Million Private Placement

Index Oil and Gas, Inc. has completed a private placement with gross proceeds of $2.77 million.

The investment is in the form of a purchase of units at a price of $0.50 per unit, comprising one share of the Company's common stock and one Loyalty Warrant to purchase 0.50 shares of Common Stock at a purchase price of $0.50 per share. The Loyalty Warrant shall not be exercisable until February 28, 2010, and only those investors who meet the requirements set forth in the Loyalty Warrant shall exercise the Loyalty Warrant at that time.

Index has participated in a number of successful projects during the current fiscal year (ending March 31, 2008). These projects, as well as the continued implementation of our business plan, have provided the Company with additional drilling opportunities in follow-on wells. The net proceeds of the Placement will be applied to these opportunities and, where appropriate, to new projects in line with the Company's strategy.

Lyndon West, CEO of Index, stated, "Index is pleased to complete this private placement. This year's drilling has presented the Company with a number of opportunities that follow on our current successes. We believe it is prudent to raise further equity capital to participate in these wells rather than use any debt instruments. The business remains debt free, and we continue to anticipate being operating cash-flow positive on a go-forward basis, subject to operational conditions, in the near future.''