Index Oil and Gas (CE) (USOTC:IXOG)
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Index Oil and Gas, Inc. ("Index") (OTCBB:IXOG), today
announced that it has entered into a Seismic Reprocessing and
Exploration Agreement (the "Agreement") with ADC (Advanced Drilling
Concepts) Petroleum, LP ("ADC").
The Agreement enables Index to participate in the reprocessing of
an area of up to 226 square miles of existing 3D land seismic data
already available to ADC as a result of its industry partnerships.
This seismic data covers prospective areas in the Gulf Coast U.S.,
throughout Texas, Louisiana and Mississippi. A unique Seismic
Reprocessing method is used to improve the structural definition of
hydrocarbon traps and potential reservoir characterization, enabling
ADC to better identify drillable prospects from existing data.
ADC's unique proprietary data reprocessing techniques are expected
to generate drillable prospects for Index's optional participation as
early as the third quarter of 2006. ADC is also developing leading
edge well completion and construction technology to which Index will
have access to as a result of the Agreement.
The Agreement provides for Index participation in two phases:
Phase 1: The Agreement enables Index to participate in the
reprocessing of 105 square miles of existing data in conjunction with
2 other experienced industry partners already working with ADC. The
Agreement gives Index the right (but not the obligation) to
participate in any prospects generated from this reprocessing, up to
an 18% working interest.
Phase 2: Within 90 days of the date of the Agreement, Index has
the option to participate in a further 121 square miles of
reprocessing on the same basis and to take up to a 12.5% working
interest in any prospects generated, again at Index's option.
The Agreement fulfils a fundamental principle of Index's desired
strategy to participate in early stage exploration with experienced
industry partners. This is intended to result in more cost effective
entry into the projects. Index's expectation is that risk will be
mitigated by Index's own risk management processes in determining the
level of participation in any drillable prospects generated as a
result of the Agreement. Index's involvement directly in the
application of the 3D reprocessing technology is also expected to
build an intellectual value which can be applied to other
petroliferous basins known to the management.
About ADC Petroleum
ADC Petroleum (Advanced Drilling Concepts) was formed in November
2004 to take advantage of innovative technology in the exploration and
production of hydrocarbons. In October 2005, ADC signed Technology
Development and Operating Agreements with two partner companies to
find and produce hydrocarbons onshore Gulf of Mexico utilizing new
seismic data processing, interpretation and novel well construction
techniques. This group currently has access to approximately 2500
square miles of existing 3D seismic data acquired in Texas, Louisiana,
Mississippi and Alabama.
About Index
Index is a gas biased oil and gas exploration and production
company, with activities in Kansas, Texas and Louisiana. It has
offices in Houston, Texas and Bath, England. Index is focused on
efficiently building a broad portfolio of producing properties with
what it believes to be significant upside potential and intends to
grow its existing asset base and revenues through further investment
in the U.S. The company seeks to develop its activities in areas
containing prolific petroleum systems set in stable political and
economic environments.
Forward-Looking Statements
The statements in the press release that relate to the company's
expectations with regard to the future impact the company's results
from acquisitions or actions in development are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The statements in this document may also contain
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Since the information may contain statements that involve
risk and uncertainties and are subject to change at any time, the
company's actual results may differ materially from expected results.