Index Oil and Gas, Inc. Announces First Gas and Condensate Sales From Shadyside Plus First Gas Sales From Hawkins

Index Oil and Gas Company, Inc. is a gas-biased oil and gas exploration and production company, with activities primarily in Texas, Louisiana, and Kansas. It has offices in Houston, Texas. Index is focused on efficiently building a broad portfolio of producing properties that it believes to have significant upside potential. The Company has an enviable drilling record and intends to grow its existing asset base and revenues through further investment in the U.S. Index seeks to develop its activities in areas containing prolific petroleum systems set in stable political and economic environments.

Why Invest in Index Oil and Gas Company, Inc.?

In the fiscal year ended March 31, 2007, Index drilled 13 wells, with a success rate of 69%, an increase in annual production of 136%, and an increase in proven reserves of 93%.

In the current fiscal year ending March 31, 2008, Index expects significant growth, based on its outstanding drilling success rates and an expanding higher-impact portfolio, balanced by some lower-risk prospects and one production well that protects investors from single critical events.

Index's estimated total proved oil and gas reserves, at March 31 2007, less production to June 30, 2007, were approximately 111.757 Mboe, consisting of 22.979 thousand barrels of oil (MBbls) and 532.670 million cubic feet (MMcf) of natural gas. At March 31, 2007 approximately 99% of their proved reserves were classified as proved developed and proved behind pipe.

Index has built a strong portfolio of prospects during 2007 fiscal year for drilling in 2008 fiscal year, which include potential high impact wells.

Index has raised $10.9 million through private placements in August and October 2006 and is fully funded for FY 2008.

Index is targeting operating cash flow positive by end of FY 2008 and earnings positive by end of FY 2009.

The Company’s strategy is to increase shareholder value by profitably increasing its reserves, production, cash flow and earnings through a risk and equity balanced program of exploration and production drilling.