
Press Release
Source: Avalon
Oil & Gas, Inc.
Avalon Reports Janssen #1A June 2007 Production
Numbers
MINNEAPOLIS, MN (PR Newswire) – July 12, 2007 – Avalon
Oil & Gas, Inc., (OTCBB: AOGN) is pleased to announced that the
Janssen #1A, Karnes County, Texas produced 8,062 MCF of gas and 163
Barrels of condensate in June 2007. Avalon owns a 15% working interest
in the well. The well is operated by Tradestar Resources (TSRR.PK)
Hot Springs, Arkansas.
The well was perforated at approximately the
10,300 foot interval in the Roeder Sand (Wilcox Sand Series). The
well was perforated with 6,000 feet of water fluid in the tubing
to help prevent any extreme gas pressure blowing the perforation
tools up the hole. The well has been flowing at an average rate of
250 MCF per day, along with 10 barrels of high grade condensate. “We are very pleased
with the initial production from this well”, stated Avalon
CEO, Kent Rodriguez.
At present the well is flowing into the sales
line without the need of a gas compressor. It is anticipated that
a small gas compressor will be required to maintain a consistent
daily flow rate. This is to prevent the possibility of not being
able to overcome the pipeline pressure being too high for the wells’ natural
flowing pressure to enter into the sales line.
The Janssen # 1A has a gas sales contract
that fluctuates monthly with the Houston Ship Channel price index.
The liquid condensate will be sold at the monthly spot price for
product in the regional Texas area. Avalon will receive its first
revenue distribution in July for the hydrocarbon products sold from
the Janssen #1A well.
Total
reserves are estimated to be 75,000 to 100,000 barrels of condensate
and 3 to 4 BCF of gas (billion cubic feet of gas). The well is located
in an area that is very active in gas and oil production. There are
several nearby wells that produce natural gas in excess of over 1
million cubic feet per day. This well should produce revenues for
many years to come.
About
Avalon Oil & Gas, Inc.
Avalon Oil & Gas, Inc. is an oil and gas 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 its strategic
partnership with UTEK, Inc, (UTK: ASE) a transfer technology
company, 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, 952-746-9655 Fax 952-746-5216
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