In August, Avalon entered into an Exclusive License Agreement with Oiltek, wherein it received approximately eighty percent (80%) or ten million shares of the Common Stock in Oiltek, in exchange for the rights to market Avalon’s portfolio of energy technologies. Avalon initially filed the Oiltek Form S-1 on October 22, and has responded to comments received back from the SEC on November 23. The Company expects the revised filing to take effect very soon.
Kent Rodriguez, Avalon’s CEO said that “The filing of the Oiltek Registration Statement forwards our strategy to add significant shareholder value through enhanced oil and gas recovery opportunities.” He added “We will be pleased to be able to offer Avalon shareholders of record a stock dividend, with the record date yet to be determined by the Board of Directors”.
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 impact North American oil production.
The intellectual properties licensed to Oiltek include: energy production enhancements for paraffin wax mitigation; intelligent drilling and completion for real-time reservoir monitoring; and leak detection for hazardous gas pipelines. Oiltek is a focused technology commercialization company which acquires and develops oil and gas production enhancing technologies from early stage licensing partners.
About Avalon Oil & Gas, Inc.
Avalon Oil & Gas, Inc. is a conservative oil and gas company engaged in the acquisition of proven oil and gas producing properties. The company continues to deploy strategic financial resources for interests in existing production and participation in developmental and rework opportunities. 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.avalonoilinc.com.
Avalon Oil & Gas, Inc., Minneapolis
Kent Rodriguez, CEO,
952-746-9655
Fax: 952-746-5216