News. Avalon Oil & Gas Acquires Working Interest In Miller County, Arkansas
MINNEAPOLIS--(BUSINESS WIRE)--Aug. 17, 2006--Avalon Oil & Gas, Inc., (OTCBB:AOGS) announced today, through its relationship with KROG Partners, LLC, a Henderson, Texas based operator, that Avalon and KROG have jointly acquired three producing oil wells located in Miller County, Arkansas from an Oil City, Louisiana, independent oil producer. The acquisition has been closed and is effective August 11th, 2006. Avalon and KROG will each own 50% working interest in the properties, and KROG will be the operator.
The wells being acquired are the Dixon Heirs #1, Deltic Farms & Timber #1, and the Gunn #1, and were originally drilled in the early 1980's. These are mature wells with stable production, currently producing approximately 5 BOPD from the Tokio zone. KROG and Avalon will immediately begin working on optimization opportunities with the goal of enhancing production from the properties.
Avalon and KROG are continuing their focus on enhancing operating synergies in the Southwest Arkansas and East Texas region through acquisition of other mature production in the area. The area immediately surrounding these new properties consists mainly of independent producers.
Avalon's Chief Executive, Kent Rodriguez, commented, "The acquisition of these three wells is part of our strategy of acquiring assets we believe to have low-risk and high production profiles. We are continuing our efforts to locate and acquire new lease opportunities consistent with our growth-at-a-reasonable-price philosophy."
Mark Oliver, a partner of Krog Partners, LLC stated, "We believe that with enhancements, production profiles and capabilities on these properties can be ratcheted up dramatically. We are excited about the opportunities this acquisition creates."
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 with multiple enhancement opportunities.
