AOGS News Avalon Oil & Gas Acquires Working Interest In Upshur County, Texas
MINNEAPOLIS--(BUSINESS WIRE)--Avalon Oil & Gas, Inc., (OTCBB:AOGS)
announced today, through its relationship with KROG Partners, LLC (“KROG”)
, a Henderson, Texas based operator, that Avalon, KROG, and Avalon’s
advisor, William Anderson DBA Anderson Oil & Gas, Inc. (“Anderson”),
have jointly acquired a fifty percent (50%) working interest in an
active Woodbine production property consisting of 13 wellbores, which
include six (6) producing oil wells, three (3) salt water disposal
wells, three (3) shut-in or marginally producing wells, and one (1) well
that has been plugged and abandoned since the effective date, located in
Upshur County, Texas. The working interest was purchased from an
Oklahoma City, Oklahoma, independent oil producer. The acquisition has
been closed and is effective as of November 15th,
2006. Avalon owns an undivided ten percent (10%) working interest in the
properties, and KROG will be the operator.
The wells being acquired were originally drilled in the 1960’s
by various operators. These are mature wells with stable production,
currently producing approximately 25 BOPD from the Woodbine Interval.
KROG, Anderson and Avalon will immediately begin working on
optimization/workover opportunities with the goal of enhancing
operations and production from the shut-in wellbores.
Avalon and KROG are continuing their focus on enhancing operating
synergies in the Southwest Arkansas, Northwest Louisiana and East Texas
region through acquisition of other mature production in the area. The
area immediately surrounding these new properties consists mainly of
independent producers.
Avalon's Chief Executive, Kent Rodriguez, commented, “The
acquisition of these wellbores is part of our strategy of acquiring
assets we believe to have low-risk and high production profiles. We are
continuing our efforts to locate and acquire new lease opportunities
consistent with our growth-at-a-reasonable-price philosophy”.
Glen Harrod, Vice President of KROG stated, “We
feel there are opportunities to enhance production through optimization
of the existing producing wells, and re-establishing production from the
shut-in wells through repairs of the submersible pumps and enhancement
and expansion of the existing salt water disposal system.”
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.
