Avalon Oil & Gas Completes Work-Over on Chance # - 2
2006-08-22 05:00 ET - News Release
MINNEAPOLIS -- (Business Wire) -- Aug. 22, 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 completed the workover the
Chance #2 well. The workover was performed as planned and within
budget, and has achieved successful results. Production from the
Chance lease has increased approximately 2-3 BOPD as a result of the
workover, with relatively low associated water production. The
workover included setting a packer to isolate a potential casing leak,
and setting a pump, rods, and a pumping unit in order to re-establish
production from the previously shut-in well.
The Chance lease, which includes the Chance #1 and #2 wells, is
producing from the Woodbine Interval, within an active waterflood
area. Total production from the Chance lease is averaging 7-8 BOPD,
and Avalon owns a 50% working interest in the leasehold.
Avalon's Chief Executive, Kent Rodriguez, commented, "We continue
to make significant inroads in terms of increased production capacity
on lease assets we believe to have low-risk and high production
profiles and are continuing our efforts to locate and acquire new
lease opportunities consistent with our growth-at-a-reasonable-price
philosophy." He continued, "We believe that with enhancements,
production profiles and capabilities on these properties can be
ratcheted up dramatically, allowing this acquisition to effectively
'pay back' its principal purchase price within twelve months. We are
currently evaluating other opportunities with similar return profiles
and anticipate announcing more developments shortly.
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.
Forward-Looking Statements
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.
Contacts:
Avalon Oil & Gas, Inc., Minneapolis
Kent Rodriguez, 612-359-9020
Fax: 612-359-9017
www.avalonoilinc.com
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