CODE OF ETHICS AND BUSINESS CONDUCT FOR OFFICERS, DIRECTORS
                                AND EMPLOYEES OF
                             INDEX OIL AND GAS INC.

1.   TREAT IN AN  ETHICAL  MANNER  THOSE TO WHOM  INDEX OIL AND GAS INC.  HAS AN
     OBLIGATION

The officers,  directors  and employees of Index Oil & Gas Inc. (the  "Company")
are  committed  to  honesty,  just  management,  fairness,  providing a safe and
healthy  environment  free  from the fear of  retribution,  and  respecting  the
dignity  due  everyone.  For the  communities  in  which we live and work we are
committed  to  observe  sound  environmental  business  practices  and to act as
concerned and responsible neighbors, reflecting all aspects of good citizenship.

For our  shareholders  we are  committed  to pursuing  sound growth and earnings
objectives and to exercising prudence in the use of our assets and resources.

For our  suppliers  and partners we are  committed to fair  competition  and the
sense of responsibility required of a good customer and teammate.

2.   PROMOTE A POSITIVE WORK ENVIRONMENT

All employees want and deserve a workplace where they feel respected, satisfied,
and appreciated.  We respect cultural diversity and will not tolerate harassment
or  discrimination of any kind -- especially  involving race,  color,  religion,
gender, age, national origin, disability, and veteran or marital status.

Providing an  environment  that supports  honesty,  integrity,  respect,  trust,
responsibility, and citizenship permits us the opportunity to achieve excellence
in our workplace.  While  everyone who works for the Company must  contribute to
the creation and  maintenance of such an  environment,  including our executives
and  management  personnel,  which have a  responsibility  for  fostering a work
environment  that is free and open  and  will  bring  out the best in all of us.
Supervisors should not place subordinates in a position that could cause them to
deviate from acceptable ethical behavior.

3.   PROTECT YOURSELF, YOUR FELLOW EMPLOYEES, AND THE WORLD WE LIVE IN

We are  committed to providing a drug-free,  safe and healthy work  environment,
and to observing  environmentally sound business practices. We will strive, at a
minimum,  to do no harm and where possible,  to make the communities in which we
work a better  place to live.  Each of us is  responsible  for  compliance  with
environmental, health and safety laws and regulations.

4.   KEEP ACCURATE AND COMPLETE RECORDS

We will maintain accurate and complete Company records. Transactions between the
Company and outside  individuals and organizations will be accurately entered in
our  books in  accordance  with  generally  accepted  accounting  practices  and
principles.  The  Company  will not  tolerate  anyone  misrepresenting  facts or
falsifying  records.  It will not be tolerated  and will result in  disciplinary
action.

5.   OBEY THE LAW

We will  conduct  our  business  in  accordance  with  all  applicable  laws and
regulations.  Compliance  with the law  does not  comprise  our  entire  ethical
responsibility.  Rather,  it is a minimum,  absolutely  essential  condition for
performance of our duties. In conducting business, we shall:

     A.   STRICTLY ADHERE TO ALL ANTITRUST LAWS

     Officers,  directors  and employees  must strictly  adhere to all antitrust
     laws where the Company is  operating.  Such laws exist in the United States
     and in many other countries where the Company may conduct  business.  These
     laws  prohibit  practices  in  restraint  of trade such as price fixing and
     boycotting suppliers or customers.  They also bar pricing intended to run a
     competitor out of business;  disparaging,  misrepresenting,  or harassing a
     competitor; stealing trade secrets; bribery; and kickbacks.

     B.   STRICTLY COMPLY WITH ALL SECURITIES LAWS

     In our role as a publicly  owned  company,  we must  always be alert to and
     comply with the  security  laws and  regulations  of the United  States and
     other countries where the Company engages in business.
<PAGE>

          I.   DO NOT ENGAGE IN SPECULATIVE OR INSIDER TRADING

          Federal law and  Company  policy  prohibits  officers,  directors  and
          employees,  directly or indirectly  through their  families or others,
          from  purchasing or selling  company stock while in the  possession of
          material,  non-public  information  concerning the Company.  This same
          prohibition  applies to trading  in the stock of other  publicly  held
          companies on the basis of material,  non-public information.  To avoid
          even the  appearance of  impropriety,  Company  policy also  prohibits
          officers,  directors  and employees  from trading  options on the open
          market in Company stock under any circumstances.

          Material,   non-public  information  is  any  information  that  could
          reasonably be expected to affect the price of a stock.  If an officer,
          director or employee is considering  buying or selling a stock because
          of inside  information  they  possess,  they  should  assume that such
          information  is  material.  It is  also  important  for  the  officer,
          director  or  employee  to keep in mind  that if any  trade  they make
          becomes the subject of an investigation  by the government,  the trade
          will  be  viewed   after-the-fact   with  the  benefit  of  hindsight.
          Consequently,   officers,   directors  and  employees   should  always
          carefully consider how their trades would look from this perspective.

          Two simple  rules can help  protect  you in this area:  (1) Do not use
          non-public  information  for personal gain. (2) Do not pass along such
          information to someone else who has no need to know.

          This  guidance also applies to the  securities of other  companies for
          which you receive  information in the course of your employment at the
          Company.


          II.  BE TIMELY AND ACCURATE IN ALL PUBLIC REPORTS

          As a public  company,  the  Company  must be fair and  accurate in all
          reports  filed  with  the  United  States   Securities   and  Exchange
          Commission.  Officers,  directors  and  management  of the Company are
          responsible for ensuring that all reports are filed in a timely manner
          and that they fairly  present the  financial  condition  and operating
          results of the Company.

          Securities  laws are  vigorously  enforced.  Violations  may result in
          severe  penalties  including forced sales of parts of the business and
          significant  fines  against the  Company.  There may also be sanctions
          against individual  employees  including  substantial fines and prison
          sentences.

          The Chief Executive  Officer and Chief Financial  Officer will certify
          to the accuracy of reports filed with the SEC in  accordance  with the
          Sarbanes-Oxley  Act of 2002.  Officers and  Directors who knowingly or
          willingly  make  false  certifications  may  be  subject  to  criminal
          penalties or sanctions including fines and imprisonment.

6.   AVOID CONFLICTS OF INTEREST

Our officers,  directors and employees have an obligation to give their complete
loyalty to the best interests of the Company.  They should avoid any action that
may involve,  or may appear to involve, a material conflict of interest with the
Company.  Officers,  directors  and  employees  should  not  have  any  material
financial  or  other  business   relationships  with  suppliers,   customers  or
competitors that might impair, or even appear to impair, the independence of any
judgment they may need to make on behalf of the Company.

<PAGE>


HERE ARE SOME WAYS A CONFLICT OF INTEREST COULD ARISE:

     o    Employment by a competitor, or potential competitor, regardless of the
          nature of the employment, while employed by the Company.
     o    Acceptance  of gifts,  payment,  or services  from those seeking to do
          business with the Company.
     o    Placement of business  with a firm owned or  controlled by an officer,
          director or employee or his/her family.
     o    Ownership  of,  or  substantial  interest  in,  a  company  that  is a
          competitor, client or supplier.
     o    Acting as a consultant to a Company customer, client or supplier.

Officers, directors and employees are under a continuing obligation to disclose
any situation that presents the possibility of a conflict or disparity of
interest between the officer, director or employee and the Company. Disclosure
of any potential conflict is the key to remaining in full compliance with this
policy.

7.   COMPETE ETHICALLY AND FAIRLY FOR BUSINESS OPPORTUNITIES

We must comply with the laws and regulations  that pertain to the acquisition of
goods and  services.  We will  compete  fairly and  ethically  for all  business
opportunities.  In  circumstances  where  there is  reason to  believe  that the
release or receipt of non-public information is unauthorized,  do not attempt to
obtain and do not accept such information from any source.

If you are  involved  in  Company  transactions,  you must be  certain  that all
statements, communications, and representations are accurate and truthful.

8.   AVOID ILLEGAL AND QUESTIONABLE GIFTS OR FAVORS

The sale and  marketing of our products and services  should always be free from
even the perception that favorable treatment was sought,  received,  or given in
exchange  for the  furnishing  or  receipt  of  business  courtesies.  Officers,
directors  and  employees of the Company  will neither give nor accept  business
courtesies that  constitute,  or could be reasonably  perceived as constituting,
unfair business inducements or that would violate law, regulation or policies of
the  Company,  or could  cause  embarrassment  to or reflect  negatively  on the
Company's reputation.

9.   MAINTAIN THE INTEGRITY OF CONSULTANTS, AGENTS, AND REPRESENTATIVES

Business  integrity is a key standard for the  selection  and retention of those
who represent the Company. Agents,  representatives and consultants must certify
their willingness to comply with the Company's  policies and procedures and must
never be retained to  circumvent  our values and  principles.  Paying  bribes or
kickbacks, engaging in industrial espionage, obtaining the proprietary data of a
third party without  authority,  or gaining inside  information or influence are
just a few examples of what could give us an unfair  competitive  advantage  and
could result in violations of law.

10.  PROTECT PROPRIETARY INFORMATION

Proprietary  Company  information  may not be disclosed to anyone without proper
authorization. Keep proprietary documents protected and secure. In the course of
normal business activities,  suppliers,  customers and competitors may sometimes
divulge to you information that is proprietary to their business.  Respect these
confidences.

11.  OBTAIN AND USE COMPANY ASSETS WISELY

Personal use of Company  property  must always be in accordance  with  corporate
policy.  Proper  use  of  Company  property,  information  resources,  material,
facilities and equipment is your  responsibility.  Use and maintain these assets
with the utmost care and respect,  guarding  against waste and abuse,  and never
borrow or remove Company property without management's permission.
<PAGE>

12.  FOLLOW  THE  LAW  AND USE  COMMON  SENSE  IN  POLITICAL  CONTRIBUTIONS  AND
     ACTIVITIES

The Company  encourages its employees to become involved in civic affairs and to
participate in the political process.  Employees must understand,  however, that
their involvement and participation must be on an individual basis, on their own
time and at their own  expense.  In the United  States,  federal  law  prohibits
corporations  from donating  corporate  funds,  goods, or services,  directly or
indirectly,  to candidates for federal offices -- this includes  employees' work
time. Local and state laws also govern political contributions and activities as
they apply to their respective jurisdictions.

13.  BOARD COMMITTEES.

The Company shall establish an Audit Committee empowered to enforce this Code of
Ethics.  The Audit Committee will report to the Board of Directors at least once
each year regarding the general  effectiveness  of the Company's Code of Ethics,
the Company's  controls and  reporting  procedures  and the  Company's  business
conduct.

14.  DISCIPLINARY MEASURES.

The Company shall  consistently  enforce its Code of Ethics and Business Conduct
through  appropriate  means  of  discipline.  Violations  of the  Code  shall be
promptly reported to the Audit Committee.  Pursuant to procedures adopted by it,
the Audit Committee shall determine whether violations of the Code have occurred
and, if so, shall  determine the  disciplinary  measures to be taken against any
employee or agent of the Company who has so violated the Code.

The disciplinary  measures,  which may be invoked at the discretion of the Audit
Committee,  include,  but are  not  limited  to,  counseling,  oral  or  written
reprimands, warnings, probation or suspension without pay, demotions, reductions
in salary, termination of employment and restitution.

Persons  subject to  disciplinary  measures  shall  include,  in addition to the
violator,  others involved in the wrongdoing such as (i) persons who fail to use
reasonable care to detect a violation,  (ii) persons who if requested to divulge
information  withhold  material  information  regarding a  violation,  and (iii)
supervisors  who  approve  or condone  the  violations  or attempt to  retaliate
against employees or agents for reporting violations or violators.