IXOG Index Oil and Gas Inc (CE)

Dutton Associates updates its coverage of Index Oil and Gas (OTCBB:IXOG) maintaining a Speculative Buy rating and a 12-month $1.80 price target. The 14-page report by Dutton senior analyst Richard R. Wolfe, CFA, is available at www.jmdutton.com, and at First Call, Bloomberg, Reuters, Zacks, Knobias, and other leading financial portals. Index Oil and Gas is a recently established oil and gas exploration and production company with producing properties in Texas, Louisiana, and Kansas. Dutton Associates estimates indicate substantially higher oil and gas revenues during the Company�s fiscal year ending March 31, 2008, followed by substantial growth of discretionary cash flow in subsequent years. The Company has a successful drilling track record and is guided by a carefully crafted operational strategy with a sophisticated risk-management system. Our rating is based on our confidence in the Company�s business plan and in the strength of the experienced management team, coupled with an expectation of strong cash-flow growth and an industry outlook calling for favorable crude-oil and natural-gas product markets. We are maintaining the 12-month price target of $1.80 per share established in our initial report of April 9, 2007. As of March�31, 2007, estimated total proved oil and gas reserves were approximately 115,000 barrels of oil equivalent (MBOE), compared to approximately 59,500 barrels one year earlier, a 92.6% increase. The majority of the reserve growth came from the Company�s South Texas interests. Reserves consisted of approximately 24,000 barrels of oil and 541 million cubic feet (MMcf) of natural gas. Approximately 113,000 barrels (99%) of proved reserves were classified as proved developed and proved behind pipe. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in the Dutton Associates one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 4/09/2007. Dutton Associates does not accept payment of any of its fees in company stock. Its principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures, and analyst background at www.jmdutton.com before investing.