Index Oil and Gas, Inc. has completed a private placement with gross proceeds of $2.77 million (the "Placement") and has appointed a Senior Vice President of Exploration and Production ("E&P") to direct the Company's expanding project portfolio.
The investment is in the form of a purchase of units (the "Units") at a price of $0.50 per unit, comprising one share of the Company's common stock (the "Common Stock") and one Loyalty Warrant (the "Loyalty Warrant") to purchase 0.50 shares of Common Stock at a purchase price of $0.50 per share. The Loyalty Warrant shall not be exercisable until February 28, 2010, and only those investors who meet the requirements set forth in the Loyalty Warrant shall exercise the Loyalty Warrant at that time.
Index has participated in a number of successful projects during the current fiscal year (ending March 31, 2008). These projects, as well as the continued implementation of our business plan, have provided the Company with additional drilling opportunities in follow-on wells. The net proceeds of the Placement will be applied to these opportunities and, where appropriate, to new projects in line with the Company's strategy.
Lyndon West, CEO of Index, stated, "Index is pleased to complete this private placement. This year's drilling has presented the Company with a number of opportunities that follow on our current successes. We believe it is prudent to raise further equity capital to participate in these wells rather than use any debt instruments. The business remains debt free, and we continue to anticipate being operating cash-flow positive on a go-forward basis, subject to operational conditions, in the near future."
Index also announced the appointment of Ronald A. Bain, Ph.D. as Senior Vice President, Exploration and Production. Dr. Bain, an experienced industry professional, will direct and develop the Company's expanding portfolio of projects.
Dr. Bain spent much of his career with the Anadarko Petroleum Corporation, a Fortune 500 company and one of the world's largest independent E&P businesses. From 1983 to his retirement from Anadarko in 2001, Dr. Bain held numerous management positions in technology and exploration, both in the domestic United States and finally as Manager of International Exploration.
Prior to joining Index, Dr. Bain was Corporate Exploration Advisor and Vice President of Geosciences of Houston-based Endeavour International Corporation, an independent energy company established to find and develop oil and gas reserves in the North Sea. Dr. Bain provided independent risk assessment of drilling opportunities and was responsible for characterizing exploration inventory for corporate portfolio management initiatives.
Dr. Bain said, "I'm delighted to join the entrepreneurial management of Index. The Company has built and managed a rapidly growing portfolio of projects with high impact potential. Recent projects position the Company for strong growth in the coming year, and I look forward to helping them maximize their strengths. I fully support their business strategy to maintain a risk-balanced portfolio."
Lyndon West, CEO of Index, said, "We are delighted to welcome Ron Bain to our management team. His broad-ranging experience in finding and evaluating domestic U.S. drilling opportunities is matched by his experience managing geoscience personnel groups and developing quality control for all technical analysis and risk assessment. Ron also fully understands the importance of communicating clearly and fully to investment analysts and building shareholder value. He will be an important asset as Index is poised for further growth in the next fiscal year."
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