1289255--7/17/2006--Index_Oil_&_Gas

related topics

{stock, price, share}

{gas, price, oil}

{loss, insurance, financial}

{cost, regulation, environmental}

{control, financial, internal}

{interest, director, officer}

{customer, product, revenue}

{financial, litigation, operation}

{cost, contract, operation}

{cost, operation, labor}

{property, intellectual, protect}

{personnel, key, retain}

{regulation, change, law}

Risks related to our financial results Index is at an early stage of development and has a limited operating history. Index has incurred significant losses since inception and anticipates that it will continue to incur losses for the foreseeable future. Index will need to raise substantial additional capital to fund its operations, and its failure to obtain funding when needed may force it to delay, reduce or eliminate its products and services. Index may be unable to effectively maintain its oil and gas exploration business. Risks Related to Index s Business Index may be unable to renew or maintain its contracts with independent purchasers, which would harm its business and financial results. Index may be subject to liability risks, which could be costly and negatively impact its business and financial results. Loss of key executives and failure to attract qualified managers, technologists, independent engineers and geologists could limit Index s growth and negatively impact its operations. Complying with federal and state regulations is an expensive and time-consuming process, and any failure to comply could result in substantial penalties. Index may experience competition from other oil and gas exploration and production companies and this competition could adversely affect Index s revenues and its business. If Index is unable to protect its intellectual property effectively, it may be unable to prevent third parties from using its technologies and methods, which would impair its competitive advantage. Index will need to increase the size of its organization, and may experience difficulties in managing growth. Oil and natural gas prices are volatile, and low prices could have a material adverse impact on our business. Assets we acquire may prove to be worth less than we paid because of uncertainties in evaluating recoverable reserves and potential liabilities. Estimates of oil and gas reserves are uncertain and any material inaccuracies in these reserve estimates will materially affect the quantities and the value of our reserves. Our exploration and development drilling efforts and the operation of our wells may not be profitable or achieve our targeted returns. The unavailability or high cost of drilling rigs, equipment, supplies, personnel and oil field services could adversely affect our ability to execute our exploration and development plans on a timely basis and within our budget. The marketability of our oil and gas production depends on services and facilities that we typically do not own or control. The failure or inaccessibility of any such services or facilities could result in a curtailment of production and revenues. We are dependent on the skill, ability and decisions of third party operators. Our oil and gas activities are subject to various risks which are beyond our control. Governmental and environmental regulations could adversely affect our business. We cannot be certain that the insurance coverage maintained by us will be adequate to cover all losses that may be sustained in connection with all oil and gas activities. Title to the properties in which we have an interest may be impaired by title defects. We are subject to compliance with securities law, which exposes us to potential liabilities, including potential rescission rights The following risks relate principally to the Company s common stock and its market value There is a limited market for our common stock which may make it more difficult for you to dispose of your stock. The market price of the Company s common stock may be adversely affected by several factors. Our common stock is subject to the "penny stock" rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock. The Company does not expect to pay dividends in the future. Any return on investment may be limited to the value of the Company s stock. A sale of a substantial number of shares of the Company s common stock may cause the price of its common stock to decline. The exercise of our outstanding warrants and options may depress our stock price We may need to increase our authorized Common Stock which could lead to dilution of the ownership interest of investors. We may need additional capital that could dilute the ownership interest of investors. We did not properly comply with Federal securities laws in obtaining stockholders consent for the increase of our authorized common stock.

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1289255--7/17/2006--Index_Oil_&_Gas_Inc.