Press Release
Source: Avalon Oil & Gas, Inc.
Avalon Exceeds Initial Production Estimates by 40% in
the Lake Washington Field
MINNEAPOLIS, MN – January 7, 2008 – Avalon
Oil & Gas, Inc. (Avalon) (OTCBB: AOGN / FWB: A3MA.F) announced
that it has completed its first production run in the Lake Washington
Field and received its check for sale of oil in December. The first
month’s production run proved to be almost 40% higher than
the company had projected. This increase in production, combined
with much higher commodity prices, has increased the internal rate
to over 35% on this recent portfolio acquisition.
Avalon
acquired non-operated production in the Lake Washington Field in
Plaquemines Parish, Louisiana, located about 60 miles south of
New Orleans, effective November 1, 2007. The Lake Washington Field
was discovered in the 1930’s and is located around a shallow
piercement salt feature. Since discovery, the field has produced
approximately 350 million barrels of oil, putting it among the largest
oil and gas fields in the United States.
Swift Energy Company (NYSE:SFY),
the operator of the property, reports replacing several of the oil
storage tanks, during which time the field has been offline. As of
the end of December, about 70% of the production was back online,
with the remainder to return online shortly. Production levels are
consistent with levels prior to the shutdown.
“We are extremely pleased with the initial production returns
from the Lake Washington Field, and with Swift Energy’s operation
of this property” said Avalon’s President and Chief Executive
Officer, Kent A. Rodriguez. “Avalon’s team has broad
experience developing oil properties in the region, and has maximized
this opportunity to refine our asset base with high margin properties,
while adding significant development drilling opportunities,” added
Rodriguez.
The Lake Washington acquisition substantially increases
Avalon’s
daily production of oil and gas. Avalon holds approximately 0.7%
working interest in 3 producing units that are currently making over
1000 barrels of oil per day. Avalon also acquired like interests
in surface production facilities and two salt water injection wells
in the transaction.
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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