Avalon Updates Shareholders on OilTek, Inc. Spin Off
Tuesday 08/12/2008 9:40 AM ET - Businesswire
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AVOLF 0.05 0.00%
AOGN 0.087 -12.74%
As of 10:32 AM ET 8/12/08
Avalon Oil & Gas, Inc., (Avalon) (OTCBB: AOGN) (FWB: A3MA.3) announced today that its majority-owned subsidiary, Oiltek, Inc., is completing a third amendment to the Form S-1 that was originally filed on October 22, 2007 with the Securities and Exchange Commission (SEC). Upon approval of the Form S-1, the Company's shares will be listed on the OTC Bulletin Board. Avalon plans to distribute the shares it owns in Oiltek to Avalon's shareholders on a date determined by the Board of Directors. Avalon is responding to comments received from the SEC regarding Oiltek in order to complete the revised filing. The Company expects this filing to be effective and the stock of Oiltek to have a CUSIP Number and Trading Symbol in the near future.
Kent Rodriguez, Avalon's CEO stated, "Completing the Oiltek S-1 Registration Statement demonstrates our commitment to our shareholders and will enable us to commercialize our oil and gas technology assets. We are pleased to be able to offer Avalon shareholders of record a stock dividend, the record date will be announced once it has been determined by our Board of Directors. We are also pleased to spin off Oiltek as an OTCBB Company instead of the Pink Sheet Company. Avalon recently reported yet another record revenue quarter and we expect Oiltek to do well in the marketplace. Shareholders will be getting two quality companies for the price of one."
The energy technologies Avalon has licensed to Oiltek support energy recovery and production enhancements for recovering oil from marginal producing oil wells. With the rise in crude oil prices and capital availability, this market represents a significant opportunity to expand petroleum production. Oiltek acquires and develops energy recovery and production enhancing technologies for the oil and gas industry. The energy recovery technologies licensed to Oiltek include: production enhancements for paraffin wax mitigation; intelligent drilling and completion for real-time reservoir monitoring; and leak detection for hazardous gas pipelines.
Wax deposits in production tubing and pumping equipment are expensive problems for producers, causing a significant decrease in oil production rates. Avalon's patented technology for paraffin wax mitigation uses ultrasonic waves to break down wax deposits and inhibit wax from attaching to pipe walls. The technology is licensed from the University of Wyoming Research Laboratory, a noted center for expertise in paraffin wax issues and petroleum engineering.
Avalon's intelligent drilling technology for smart oil well borehole casings uses a densely spaced network of casing sensors to monitor critical parameters in a subsurface reservoir. Data fusion technology yields operators real-time knowledge of reservoir operations and processes for primary and secondary recovery. Applications include: mapping and monitoring oil recovery without interfering with normal well operations. This technology was developed at Lawrence Livermore National Laboratory.
The third technology licensed to Oiltek from Avalon performs hazardous leak detection in gas pipelines. This patented technology provides reliable and continuous monitoring of buried pipelines to detect smaller leaks than possible with currently available methods. This system uses a series of acoustic sensors to monitor gas pipeline emission changes. The technology has been successfully fielded with a major independent oil company, and was originally developed by Rensselaer Polytechnic Institute.
Avalon and Oiltek are actively seeking new energy recovery technologies to commercialize for oil and gas production enhancement.
About Avalon Oil & Gas, Inc.
Avalon Oil & Gas, Inc. is an oil and gas investment company engaged in the acquisition of oil and gas producing properties. Avalon is acquiring interests in stable, mature production assets in Louisiana, Texas, Arkansas, Kansas and Oklahoma. In addition, Avalon's technology group acquires and develops oil production enhancing technologies. Avalon is building an asset portfolio of innovative technologies in the oil and gas industry to maximize enhancement opportunities through Oiltek, Inc., Avalon's majority-owned subsidiary.
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.
FOR FURTHER INFORMATION, please visit the company's website at www.avalonoil.com.
SOURCE: Avalon Oil & Gas, Inc.
Avalon Oil & Gas, Inc., Minneapolis
Kent Rodriguez, 952-746-9655
Fax: 952-746-5216
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