Index announces Outlar well success

Index Oil and Gas, Inc. announced that initial test results for the Outlar 1 well (”Outlar”) in the West Wharton prospect located in Wharton County, Texas, achieved test flow rates of approximately 1.6 million cubic feet of gas per day (mmcfpd) and 77 barrels of condensate per day (bcpd) 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 10.9375% 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%.