
Press Release
Source: Avalon Oil & Gas, Inc.
Avalon Increases Working Interest in Janssen #1A Gas Well
MINNEAPOLIS, MN – April 10, 2008 – Avalon Oil & Gas,
Inc., (Avalon) (OTCBB: AOGN / FWB: A3MA.F) announced today that it has increased
its working interest to 7.25 % in the Janssen #1A gas well in Karnes Country,
Texas. The Janssen #1 well has maintained a production rate of 215 MCF and 5
barrels of condensate per day since the well was completed in May 2007. The Janssen
#1A well is located in an area that is very active in gas and oil production.
Total reserves are estimated to be 75,000 to 100,000 barrels of condensate and
3 to 4 billion cubic feet (BCF) of gas. The well was perforated at the 10,300
foot interval in the Roeder Sand (Wilcox Sand Series.)
Kent A. Rodriguez, Avalon's
CEO said, "We are pleased to increase
our ownership interest in this steady producing well, which has been
delivering an internal rate of return exceeding 38%.” He added “With
the consistent returns we have experienced on the Janssen well to
date, this asset represents a great performer in our growing portfolio
of oil and gas producing properties.”
The Janssen has a gas sales contract that fluctuates monthly with
the Houston Ship Channel price index. Liquid condensate is sold at
the monthly spot price for product in the regional Texas area. Avalon’s
partners in the Janssen well include Tradestar Resources (TSRR.PK),
Hot Springs, AR; Bedford Energy (BFDE.PK) Oklahoma City, OK, and
Penasco Petroleum, Austin, TX. PROEX Energy Management is the operator
of 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
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