Source: Avalon Oil & Gas, Inc.
Avalon Acquires a Portfolio of Oil and Gas Producing Properties in Western Oklahoma
MINNEAPOLIS, MN, September 16, 2010 – Avalon Oil & Gas, Inc., (“Avalon”) (OTCBB: AOGN / FWB: A3MA.F) is pleased to announce that it has entered into a Letter of Intent with Fossiltec, Inc., to purchase non-operating working interests in five (5) producing oil wells and thirty-three (33) producing gas wells, for a combination of cash and newly issued common stock. The properties are located in the Anadarko Basin of Western Oklahoma, in the counties of Roger Mills, Grady, Caddo, Custer, Blaine, and Beckman. The properties are currently producing 6 Barrels of Oil and 200,000 Cubic Feet of Gas per day.
“We are very excited about this acquisition and plan to close this transaction before October 15, 2010. The reserves on these properties exceed 505,000 MMCF of gas and 8,500 Barrels of Oil, with a well established decline curve and a production history ranging between 5 and 30 years. We project our income from these properties will average $20,000 per month for the next three years”, said Avalon’s CEO, Kent A. Rodriguez. “In addition, we are actively reviewing several other producing oil and gas properties for near-term acquisition” added Rodriguez.
About Avalon Oil & Gas, Inc.
Avalon Oil & Gas is an oil and gas company engaged in the acquisition and development of producing oil and gas properties. In addition, Avalon’s technology group acquires and develops energy production enhancing technologies. Through Oiltek, Inc., Avalon’s majority-owned subsidiary, Avalon is building an asset portfolio of innovative technologies in the energy industry to maximize enhancement opportunities. To learn more about Avalon, please visit: www.avalonoil.com.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Avalon Oil & Gas, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflectchanged assumptions, the occurrence of unanticipated events or changes to future operating results.
FOR FURTHER INFORMATION,
please visit the company’s
website at www.avalonoilinc.com, or contact:
Avalon Oil & Gas, Inc.,
Kent Rodriguez, CEO