Press Release
Source: Avalon Oil & Gas, Inc.


Avalon Increases Production on the Grace #2 Well

MINNEAPOLIS, MN, March 19, 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 gas production from the Grace #2 well has averaged 230 MCF per day for the past 30 days.

“We have increased the choke on the Grace #2 and will begin producing the well at 400 MCF per day for the next few weeks, monitoring the downhole pressure in the well to determine if it is impacted by the increased flow rate,” said Avalon’s CEO, Kent A. Rodriguez. “Other Red Fork wells in the area have not experienced a significant decline in downhole pressure with an increase in flow rates,” Rodriguez added. “Even in the current price environment, production from the Grace #2 will have a marked effect on Avalon’s revenue stream” he said.

Avalon holds a 30.50% working interest and a 23.876875% net revenue interest in the Grace #2, is continuing to acquire additional fractional working interests in the well.

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