Index Oil and Gas (IXOG) has completed a private placement with gross proceeds of $2.77M and has appointed a Senior Vice President of Exploration and Production to direct the company’s expanding project portfolio. The investment is in the form of purchase of units at a price of $0.50 per unit comprising of one share of the company’s common stock and one Loyalty Warrant to purchase 0.50 shares of common stock at a purchase price of $0.50 per share. The Loyalty Warrant will not be exercisable until February 28, 2010, and only those investors who meet the requirements of the Warrant shall exercise the Loyalty at that time.
Index has participated in a number of successful projects during the current fiscal year and these projects, as well as the implementation of the company’s business plan, enabled the company to participate in additional drilling opportunities in follow-on wells. Net proceeds of the private placement will be applied to those drilling opportunities and to new projects in line with the company’s strategy where appropriate. Lyndon West, chief executive officer stated, “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.”
The company also announced the appointment of Ronald A. Bain, Ph.D. as Senior Vice President, Exploration and Production. Dr. Bain will direct and develop the company’s expanding portfolio of projects. Before joining Index, Bain was Corporate Exploration Advisor and Vice President of Geosciences of Houston-based Endeavour International Corporation, an energy company established to find and develop oil and gas reserves in the North Sea.
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