Press Release
Source: Avalon Oil & Gas, Inc.


Avalon Completes Workover on Grace # 5A Well

MINNEAPOLIS, MN, January 30, 2009 –Avalon Oil & Gas, Inc., (Avalon) (OTCBB: AOGN) provided an update on workover operations in the East Chandler Field, Lincoln County, Oklahoma, and reported that the workover of the Grace # 5A Well has been completed. Avalon holds a 23.5% working interest and a 19.3% net revenue interest in the Grace # 5A. The well has been shut-in for the past several months. Initial production after the completion of the workover is 200 MCF of gas and 200 barrels of fluid per day. When the Grace # 5A well was originally completed in December of 2006, initial production was 300 MCF of gas per day and 50 barrels of oil per day from the Prue Sand formation.

Avalon closed its acquisition of the Grace # 5A and other assets in the Grace Field, from Bedford Energy, Inc., in December 2008.

“We are excited to have completed the first workover of the wells in the Grace Field, and encouraged with the initial results,” said Kent Rodriguez, Avalon’s CEO. “We will have a workover rig on location in the next couple weeks, and expect to complete the workover of the Grace # 1, Grace # 2, Grace # 3 and Grace # 6 wells by March 15, 2009,” he added.

Avalon’s growing energy portfolio now includes production assets of 61 producing oil and gas wells in 5 states. The company will continue to expand capital deployment through the acquisition of high potential oil and gas producing properties in Oklahoma and West Texas.


About Avalon Oil & Gas, Inc.
Avalon Oil & Gas, Inc. is an oil and gas investment company engaged in the acquisition of oil and gas producing properties. In addition, Avalon's technology group acquires and develops oil production enhancing technologies. Through Oiltek, Inc., Avalon’s majority-owned subsidiary, Avalon is building an asset portfolio of innovative technologies in the oil and gas industry to maximize enhancement opportunities at its various oil and gas properties.

Forward-Looking Statements
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 reflect changed 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., Minneapolis
Kent Rodriguez, CEO
Tel: 952-746-9655
Fax 952-746-5216