Index Oil and Gas, Inc. says 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%.

Lyndon West, CEO of Index, stated, "This is a very pleasing result for Index and an important affirmation of our growth strategy. We anticipate that, subject to the performance and evaluation of this well, there will be additional follow-on wells in the project. The successes at Cason (announced September 18, 2007) and Outlar give us running room for additional wells which will in a success case add incremental volumes and production potential which has been a key objective for the 2008 portfolio."