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Index Oil and Gas Rated 'Speculative Buy/4' With a Twelve-Month Target Price of $1.50 By Investrend Research Affiliate SISM Research

Posted on: Wednesday, 26 September 2007, 09:00 CDT

(Investrend Research Syndicate) In an initial report dated September 24, 2007, Ernest C. Schlotter, a senior analyst with SISM Research and a StarMine four-star analyst, has rated Index Oil and Gas Inc. (OTCBB: IXOG) "Speculative Buy/4" with a 12-month target price of $1.50.

The full SISM report on SCEY, including important disclosures, disclaimers and analyst qualifications is available at http://www.sism.com and http://www.investrendresearch.com, or may be directly accessed via this link: http://www.investrend.com/Admin/Topics/Articles/Resources/501_11907619 68.pdf (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.

SISM analyst Schlotter described Index Oil and Gas as follows:

"Houston-based Index Oil and Gas Inc., is a junior oil and natural gas exploration and production company, with producing properties in Kansas, Texas, and Louisiana. The Company is focusing on maintaining a portfolio of long-lived, lower risk reserves along with shorter lived, higher margin reserves. This balanced reserve mix strategy provides a diversified cash flow foundation to fund the Company's development and exploration drilling program. In its first year as a publicly traded company, Index achieved a strong growth rate and increased production and proven reserves substantially. Index Oil and Gas is well funded for the next twelve months to execute its ambitious business plan. The Company has begun participation in larger, high impact projects in the Gulf Coast that have been very successful so far and SISM Research believes that this will accelerate growth for the years to come."

According to analyst Schlotter:

"Index Oil and Gas achieved impressive growth figures for its FY2007 and extended this growth into Q1FY2008. Oil and gas sales increased in Q1FY08 by more 115% compared to Q1FY07; proven reserves grew by 92% in FY2007 ended March 31, 2007. One hundred percent of this reserve increase was added through the drill bit.

"The Company had a drilling success rate of 69%, with the largest reserve additions coming from properties in South Texas and Louisiana. Going forward, I expect to see substantially increase revenue flow from the successful wells drilled in South Texas during Q3 and those to be drilled in Q4FY08.

"After successfully completing the initial phases by building a portfolio of long-lived, lower risk reserves, the Company has now entered into the drilling of a high impact portfolio of wells with subsequently higher margin reserves, thus increasing reserves, production, cash flow, and earnings substantially. For the current planned five-well program, SISM Research estimates IXOG could add 35.0 Bcf in proven reserves if all drillings are successful, in line with the Company's disclosed estimated net resource potential of 5.7 Mboe (34.2 Bcfe) from its FY2008 drilling portfolio. We will keep a close eye on the Alligator Bayou well participation, which could become a major discovery. If successful, this prospect has a huge potential upside with company making assets."

SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM Research writes, publishes and distributes research coverage on micro- to small-cap public companies trading on the OTC, NASDAQ and AMEX. This coverage is geared toward institutional and individual investors in both North America and in German-speaking Europe, a market that represents more than 100 million people. SISM Research is a content provider to Thomson Financials OneAnalytics/FirstCall and Investext, Reuters Multex, Knobias and Investrend.

Both SISM Research and Investrend Research subscribe to the exacting "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com , as well as the CFA-NIRI Guidelines at http://www.cfainstitute.org . SISM's Research platform is also executed in accordance with Guidance set forth by U.S. Securities and Exchange Commission's Advisory Committee on Smaller Public Companies at http://www.sec.gov/info/smallbus/acspc/acspc-finalreport_d.pdf .

International Partners S.A. will pay SISM Research $1,750 per month over a two-year period solely to ensure independent coverage of Index Oil and Gas Inc. SISM and Investrend Research take steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage.

Complete information about this company is available at the company's InvestorPower page accessible from http://www.investrend.com/company/list.asp?sPathParam=yes , and the full report is available at http://www.sism.com and http://www.investrendresearch.com . Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.

Anyone interested in receiving alerts regarding Index Oil and Gas research should email contact@investrend.com or info@sism.com with "IXOG" in the subject line, or click on http://www.investrend.com/contact.asp .

Forward-Looking Statements: Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results.

Source: Business Wire

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