Index Oil and Gas, Inc. has entered into Participation and Joint Operating Agreements for the drilling of the Cow Trap project ("Cow Trap") to be located in Brazoria County, Texas.

The Cow Trap well, named Ducroz 1, targets gas in stacked Miocene objectives at depths ranging from 4,900 feet to 6,400 feet. The well has a planned total depth of approximately 6,800 feet.

Ducroz 1 is to be drilled into a gas-bearing four-way dip structure defined by 2D seismic and offset well data. Two down-dip wells drilled into the same structure have produced 24.4 BCF of gas from stacked Miocene reservoirs (13.1 BCF and 11.3 BCF, respectively). This equates to approximately 4.1 million barrels of oil equivalent.

The Cow Trap structure has Proved Undeveloped Reserves ("PUDs") estimated by a third party at 4.1 BCF gross, equating to 0.213 BCF at Index's net revenue interest.

Ducroz 1 is expected to be spudded during the second half of 2007 and to take approximately one month to drill. Index has a 7.5% working interest in project.

Lyndon West, CEO of Index, stated, "Cow Trap typifies the category of relatively low risk well that Index uses to balance risk elsewhere in our expanding portfolio of wells. Given the low risk profile and nearby successful analogs with excellent cumulative production, Cow Trap is a very attractive well for Index."