On September 15, 2011, the Board of Directors approved, and recommended to the stockholders for approval, an amendment to the Company's Articles of Incorporation (the "Certificate of Amendment") that will (1) change the Company's name to "Rango Energy Inc." and (2) effect a 1-for-50 reverse split with respect to the outstanding shares of the Company's Common Stock. The full text of the Certificate of Amendment is attached to this Information Statement as Appendix A. There will be no change to the authorized shares of Common Stock as a result of the reverse stock split. Holders of the Company's Common Stock will not be entitled to fractional shares resulting from the reverse stock split and any such fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share.
Avro Energy Inc. (OTCQB Market: AVOE) is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in North America, with current operations in the ArkLaTex region of Louisiana and Arkansas . Avro's objective is to seek out and develop opportunities in the oil and natural gas sectors that represent low risk opportunities for the Company and its shareholders. In addition, Avro aims to seek larger projects that can be developed and produced with Joint Venture partners.
The ArkLaTex is a U.S. socio-economic region where Arkansas , Louisiana , Texas , and Oklahoma intersect. The region is centered on the Shreveport/Bossier metropolitan area in Northwest Louisiana . The region's history is heavily linked with the oil industry. The geology associated with the deposition of sediments from the Mississippi River , in particular, makes this area an abundant source for the oil and gas industries, which leads to the high levels of oil production within the region.
Avro Energy is concentrating its efforts on oil because it believes that world oil demand will continue to increase in the coming decade. The Company's long term plan is to use "through the pipe" logging technology to identify new productive zones for production, perforate these zones and increase oil production. It is the Company's belief that production can be increased by beginning to produce in these new productive zones.
In July 2010 Avro Energy used through the pipe well logging technology on its Weigel-Willis well in South Arkansas . The well logs were reviewed by an experienced well logging engineer who confirmed that there are four additional zones of interest in this well that also have good bonding behind the pipe. The Company has always held the belief when it purchased these wells that there were additional zones of interest that could possibly increase production.
Avro Energy's Consulting Geologist has previously recommended that the Company log at least one well in each field where the Company holds an interest. As a result, it is the Company's intention to log at least four more wells in South Arkansas using through the pipe well logging technology. Once this is complete, the Company plans to perforate the zones of interest found through the use of this technique.
The Company has a 100% working interest in four oil and gas leases in Caddo Parish, Louisiana. The first three leases are the Muslow A, B, and C Leases, which in total comprise of 8 wells and equipment. The fourth lease is the Caddo Levee Board Lease, comprising of 13 wells and equipment. The Company currently obtains production from these leases. The Company intends to continue workover operations on these leases to increase production.
The Company holds a 100% working interest in eleven producible deep oil wells located in South Arkansas. In addition, the Company has three disposal wells with this package. The deepest of these wells produces from the Smackover formation at 7800 feet, which fits with the Company's plan to look at deeper horizons for zones capable of larger production. The producing wells are productive from the Rodessa, Paluxy, Pettit, Smackover, and Tuscaloosa Formations.
The Company holds two additional oil leases in Southern Arkansas. There are two wells on these leases; the Bette No. 1 and the Bette No. 2.
The Company holds the Dixon Heirs Oil Lease located in Kiblah South Arkansas. This Lease consists of the Dickson Heirs No. 1 Deep Oil Well and 160 Acre Oil Lease located in South Arkansas. This is an important acquisition for Avro Energy, as it will allow the Company to recomplete a previously-producing Deep Well and also allow the opportunity for the Company to perforate additional zones of interest in this Well. In addition, this acquisition will give the Company multiple opportunities for drilling additional wells at this location. The Dickson Heirs No. 1 Deep Well was initially drilled to 6100 feet. The Company plans to recomplete this well as well as perforate additional zones of interest in this well. This well is located in Kiblah, Arkansas, and is close to the Company's current production in South Arkansas. The Dickson Heirs Oil Lease is comprised of 160 Acres located in and around Kiblah, South Arkansas, close to the Company's current production in South Arkansas. The Company is excited about this acquisition, as it believes that the 160 Acre Oil Lease will give the Company multiple opportunities for drilling additional wells at this location.
The Company's overall plan is to recomplete all of its wells. Review of well logs and other information obtained by the Company leads management to believe that there are uphole zones of interest that can be brought into production by perforating these prospective hydrocarbon formations in most of its wells. The Company has reviewed well logs from other deep wells on its leases and is of the opinion that each of the wells has the capacity to produce from up hole formations. To that end the Company's work program will include the latest technology to log these wells "through the pipe" and to determine how best to increase production from the Company's leases.
As an example, according to the Company's review of the original core analysis of the No.2 Dixon Narcarrow Well located in South Arkansas, this zone of interest was never previously perforated by the original owners of the well. It is the Company's plan to re-enter this well and to attempt to bring this prospective zone at 3125 ft to 3134 ft into production.
Avro Energy also has a wholly-owned subsidiary called Avro Recovery Services LLC. This wholly-owned subsidiary is incorporated in the state of Louisiana. Management of the Company has identified an opportunity in the ArkLaTex region of Louisiana for oil recovery services as a complementary business to the Company's oil exploration and production in the region. The Company intends this subsidiary to be engaged full-time in the business of oil and gas environmental remediation, and will have the ability to clean up oil and hydrocarbon spills in the area. The Company has identified this as a very profitable and complementary subsidiary to the Company's primary purpose of exploring and producing oil wells in the region.
Avro Energy is concentrating its efforts on oil because it believes that world oil demand will increase in the coming decade. The Company's long term plan is to use "through the pipe" logging technology to identify new productive zones for production, perforate these zones and increase oil production. It is the Company's goal to increase production to 200 barrels of oil per day and then set the goal to 500 barrels per day.
Market Value1 $217,709 a/o Feb 17, 2012
Shares Outstanding 54,427,160 a/o Nov 16, 2011 Press Releases
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