Acquiring Working Interest Percentages in Oil & Gas Projects

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Strategy enables companies like Index Oil & Gas to build broad portfolio of producing properties without assuming all the risk.

Even though the saying, "If you want something done, do it yourself," is a popular phrase, it doesn't apply to every situation. Take, for example, the strategy being employed by Index Oil and Gas (OTCBB:IXOG), a Texas-based oil and gas exploration and production company. Index Oil and Gas doesn't go at it alone. Instead, the company has acquired working interest percentages in more than a dozen oil and gas wells and has a booming success rate.    

Index Oil and Gas' strategy of partnering with other companies on exploration projects, instead of taking on all the risk, has numerous benefits. Firstly, it enables the company to rapidly build a balanced portfolio of producing assets without exposing investors to single critical events. As such, its portfolio can withstand failure and still be a success. Secondly, Index can manage its risk by spreading the company's interests across a balanced mix of lower risk and higher impact projects, participating on a percentage basis. In addition, by sharing in developmental costs, Index and its partners equally reduce risk and gain potential reserves. And finally, because it's commonplace for exploration companies to have specific knowledge in a particular geographic region, partnering with those companies can have a profound impact on a company's growth.

In the last two months, Index Oil and Gas has acquired participation working interest percentages in three gas exploration projects, the Shadyside Prospect in Louisiana, the Cow Trap project in Texas, and the Alligator Bayou prospect in Texas. The Alligator Bayou prospect is the largest the company has signed to date -- with potential impact greatly exceeding all previous prospects and with at least 5 times more potential to Index than even Shadyside, the next largest prospect in the portfolio.

Index Oil and Gas CEO, Lyndon West, who has 25 years experience in the oil and gas industry, is a firm believer in his company's business strategy. Commenting on the signing of higher impact wells, he said; "Participation continues the objective for Index to invest in projects that have greater upside potential with an acceptable risk profile."    

With interests in more than 20 wells already in production; other discoveries already made and likely to be put into production; a portfolio of interests in the much larger, potentially company-transforming, high-impact well arena slated for drilling over the next six months; and a near 70% success rate, it's easy to see why Index Oil and Gas' "partner" strategy works, and why the old adage, "If you want something done, do it yourself," doesn't always apply.

Source: Index Oil and Gas
Investor Relations Contact:
Stanley Wunderlich, CEO
CFSG1
1-800-625-2236

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Daniel Stepanek
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