Index Oil and Gas, Inc. announced that initial test results for the George Cason Gas Unit 1 well ("Cason") in the Fern Lake area of Nacogdoches County, Texas achieved a maximum flow rate of 1,168 thousand cubic feet of gas per day.

It is anticipated that Cason will be put on production and begin flowing into the local pipeline grid in October 2007.

Cason is part of the Company's Fiscal Year 2008 portfolio of planned higher impact prospects described in its Operations Summary and Outlook released on June 11, 2007. Prospects in this portfolio could, if successful, significantly grow the Company as a result of increased reserves, production and revenue. As the first of Index's high-potential prospects to achieve flow, Cason builds upon the success achieved with more modest prospects during the Fiscal Year ending March 31, 2007.

Lyndon West, CEO of Index, stated, "We are pleased with the results of the test and the very efficient and timely drilling and testing operation by the operator. We look forward to producing first gas from this well and hope to participate in further wells in the Fern Lake area."

Index has a 24% working interest before payout and 18% working interest after payout. The Fern Lake Area of Mutual Interest, in which Cason was drilled, covers 908 gross and 538 net acres.