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 $1.30 price target. The 12-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. During the eight-month period since our August 2007 update report, management has consistently pursued its strategies for developing its larger-scale projects along the Gulf Coast in Texas and Louisiana. Although production growth has taken place more slowly than previously anticipated and lease operating expenses have been above projections on a per-unit basis, projected cash-flow remains very attractive and the estimated future reserve base (in 2009 � 2010) now approximates 23 billion cubic feet (approximately 4.0 million barrels of oil equivalent). The recent addition of Ron Bain as Senior Vice President of Exploration and Production should help the Company meet its growth targets, and the recent equity raise of $2.77 million evidences that adequate financial support for management�s program is in place. In addition, prices for crude oil and natural gas are enjoying a very strong rally which should be capable of sustaining a higher long-term price floor for both commodities. We therefore reaffirm our rating of Speculative Buy; however, we have decreased our 12-month price target to $1.30 per share. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 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.