Avalon Acquires Leasehold in Vernon County, Missouri
MINNEAPOLIS, July 11 /PRNewswire-FirstCall/ — Avalon Oil & Gas, Inc., (“Avalon”) (OTC Bulletin Board: AOGN) is pleased to announce that it has entered into a letter agreement to acquire an undivided one hundred percent (100%) working interest in a 320-acre leasehold in Vernon County, Missouri. The leasehold contains over 70 wellbores, with over 20 wellbores equipped for production.
Vernon County, Missouri has produced oil since 1953. The Shell Oil Company, Phillips Petroleum and Humble Oil Company have all tested the Bluejacket and Warner Sandstones with various levels of success. In the early 1980′s, a steam injection method was proven successful in extracting the heavy crude oil from the sandstone formations. A study of the effect of microbial treatments to enhance the recovery of oil and gas was performed by the University of Missouri-Rolla in 2004. Recently, Mega West Company and Colt Energy Company have been testing core samples from their leaseholds to prepare for steam injected oil enhancement recovery production units.
Oil has been produced from the Ida-Fauvergue leasehold in limited quantities since 1979, by utilizing a cyclic steam injection recovery system. The cumulative oil production to date is over 325,000 barrels of oil. Avalon has retained a petroleum engineer and microbiologist with extensive experience in evaluation and production of oil and gas from the Bluejacket and Warner Sandstones. They are currently reviewing core samples of the 65 wells drilled on the Ida-Fauvergue leasehold in the early 1980′s, the lease production history, and production schematics from producing leaseholds in close proximity to the Ida-Fauvergue leasehold. Preliminary studies indicate there may be over 8,000,000 barrels of oil in the southwest and east-central portions of lease.
About Avalon Oil & Gas, Inc. Avalon Oil & Gas is an oil and gas company engaged in the acquisition and development of producing oil and gas properties. In addition, Avalon’s technology group acquires and develops energy production enhancing technologies. Through Oiltek, Inc., Avalon’s majority-owned subsidiary, Avalon is building an asset portfolio of innovative technologies in the energy industry to maximize enhancement opportunities. To learn more about Avalon, please visit: www.avalonoil.com.
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.avalonoil.com
SOURCE Avalon Oil & Gas, Inc.