AVLN, Avalon Energy, Utah oil/ gas
These folks are in the heart of the Utah Oil/Gas rush...
Avalon Energy Corporation (OTC BB: AVLN) Issue # 36 - May 2005
Common Shares Outstanding 33,853,493
Fully Diluted 37,025,493
The Investment Opportunity
Avalon Energy Corporation has an undivided 85% working interest in a giant gas field lease in the prolific natural gas producing Uinta Basin, located in the US Rockies, Utah. The lease comprises 13,189 acres with a potential 4 TCF recoverable gas and is overpressured by a 0.55 - 0.85 gradient.
According to available data in the area, the prospect property has been delineated using several hundred miles of seismic. The seismic data confirms the thick Emery pay section and shows several sediment wedges in the prospect area. This giant gas lease borders other leases owned by EOG Resources Inc. (NYSE: EOG) and EnCana Corp (TSE: ECA.TO; NYSE: ECA). Bill Barrett Corporation (NYSE: BBG) is also nearby.
Major energy companies today recognize that tight gas reservoirs, where geological formations make production complex, and coal-bed methane, where gas is extracted from coal deposits, are two of the more important near term sources to boost North American production of natural gas as demand outstrips supply and drives up prices.
Avalon states that its Uinta Basin Prospect has the potential of being a Giant Gas Field similar to the Drunkards Wash Field and the Jonah Field, both recognized gas fields. The Drunkards Wash Field, just south of Avalon's prospect area, is estimated to be between 2-4 TCF of recoverable gas. The Jonah Field Overpressured Gas Plain, which is analogous to the Company's prospect area, has similar overpressuring, depth, reservoir rocks and is estimated to be 2.5+ TCF.
According to Carlton Parfitt, President, With natural gas selling at today's price of approximately $7.00 USD per cubic feet of gas (CFG), the value of the potential 4.2 TCF of recoverable gas is extremely positive, approximately $28 billion USD! It is very exciting to know that several of the major oil and gas companies who also own leases in the area are planning to drill this summer which shows that they share our enthusiasm.
Avalon Energy is positioned to exploit this domestic initiative and capitalize on a huge and expanding market and will update shareholders regularly concerning its activities via press release and/or shareholder conference call.
Recent News Releases - Management
Avalon announces that the Company's Management, Robert Klein and Dr. Robert Milam, met with several independent oil and gas professionals on April 26th and 27th in Utah. The purpose of the meeting is to review certain proprietary seismic data pertaining to the prospect and to confirm the initial three (3) drill targets for permitting purposes. In addition, a drilling budget report will be prepared based on the technical data and information from the experts.
Dr. Milam has a Masters Degree in Geology from Rice University, Texas and a Doctorate (PhD) in Geology from Stanford University, California. His professional affiliations include being a member of GSA, SIPES, Houston Geological Society, Certified Petroleum Geologist No. 5320 (AAPG), and a Licensed Professional Geologist No. 604 (Texas).
In his capacity as a Consulting Geologist, his clients have included Exxon Mobil, Mitchell Energy, and Apache Oil Co., Pemex and Conoco.
"Dr. Milam's expertise and experience in interpreting and assessing the available data on the Uinta Basin prospect will help Avalon decide the next plan of action," declares Company President, Carlton Parfitt.
Patrick T. Webb of Webb Exploration Partners, L.L.C. has also joined the Advisory Board of Directors and Management Team of the Company.
Mr. Webb received his Bachelor in General Business from the University of Texas in 1976, and a Masters in Finance from Texas A&M University in 1981. His professional affiliations include the American Association of Professional Landmen, Houston Association of Professional Landmen, Society of Petroleum Engineers, Independent Petroleum Association of America, Texas Independent Producers and Royalty Owners Association, and Houston Producers Forum.
Mr. Webb worked for The Houston Exploration Company from 2001 to 2003 handling their onshore U.S. business development and land matters. His accomplishments there included the acquisition of leases for over 200,000 acres of land and over $100 million in acquisitions of producing properties.
