Index Oil and Gas, Inc. announced that Serrano gas discovery began producing on 2 May 2007 at a rate of 250 thousand cubic feet of gas per day (MCFGPD).

The shut-in tubing pressure (SITP) and flowing tubing pressure (FTP) were 1,250 pounds per square inch (PSI) of dry gas. Over the first 14 days of production the average production rate was 275 MCFGPD through a 6/64 inch choke.

The Serrano discovery, renamed Friedrich Gas Unit 1, is in Victoria County, Texas. Index has a 37.5% working interest and a 28.125% net revenue interest in this well.

Lyndon West, CEO of Index, commented; "Our relatively large net revenue interest in this successful well will contribute significantly to the Company's cashflow. I look forward to announcing the commencement of further production from recent discoveries in the near future."