Avalon Oil & Gas, Inc., AOGS announced today that it has signed a Letter of Intent (LOI) to acquire a fifty percent
(50%) working interest in two properties from KROG Partners, LLC
(KROG). The properties include the J.C. Kelly wellbore and a 121.9
acre lease in Wood County, Texas, along with the E.A. Chance #1 and #2
wellbores and a 40 acre lease in Camp County, Texas. Both acquisitions
include surface equipment.
Currently inactive, the J.C. Kelly wellbore is anticipated to
produce 10 barrels of oil per day from the Paluxy Zone after a pending
workover. The E.A. Chance #1 well is producing 5 barrels of oil per
day from the sub-Clarksville zone, with potential to double production
levels upon workover of the Chance #2 well. Avalon and KROG plan to
engage engineers and technical personnel to complete the workovers on
both the Chance #2 and J.C. Kelly wellbores after the execution of a
definitive acquisition agreement and joint operating agreement.
Avalon Oil & Gas, Inc. is an oil and gas company engaged in the
acquisition of oil and gas producing properties with multiple
enhancement opportunities.
Forward-looking statements in the release are made pursuant to the
Safe Harbor Provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to certain risks
and uncertainties, and actual results could differ from those
discussed. This is material information only and is not an offer or
solicitation to buy or sell the securities.
For more information, see www.avalonoilinc.com or contact:
KEYWORD: NORTH AMERICA MINNESOTA TEXAS UNITED STATES
INDUSTRY KEYWORD: NATURAL RESOURCES MINING/MINERALS CONTRACT/AGREEMENT
SOURCE: Avalon Oil & Gas, Inc.
CONTACT INFORMATION:
Avalon Oil & Gas, Inc., Minneapolis
Kent Rodriguez, 612-359-9020
Fax: 612-359-9017
Business Editors
MINNEAPOLIS--(BUSINESS WIRE)--June 8, 2006--
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