Avalon Oil & Gas, Inc. is an independent domestic oil and natural gas producer focused on leveraging efficient reservoir maintenance and innovative technologies to generate stable cash flows and production. By acquiring a portfolio of oil and gas leases to generate asset growth, the company aims to deliver a sustainable rate of return for their shareholders. Avalon currently owns working interests in Texas, Arkansas, Louisiana, and Oklahoma.
Instead of engaging in exploration and drilling exploration wells, the company invests in underdeveloped properties with existing stable cash flows. This relatively low risk business strategy enables Avalon to realize almost immediate cash flows and allows management to concentrate on expanding production of the acquired oil and gas properties.
The company is also in the process of acquiring a portfolio of new technologies developed for the oil and gas industry. Avalon first evaluates the commercialization potential with regard to technology and market viability, and then if merited, proceeds to rapid prototype development and field testing. The technologies currently under review were developed at leading universities and research labs, including the University of Wyoming and the Lawrence Livermore National Laboratory.
Even during challenging times, the world depends on oil & gas exploration and production companies to deliver millions of barrels of oil every day. Increased demand from emerging countries such as China further escalates competition for this precious resource. With a solid management team and impressive portfolio of leasehold interests and joint ventures, Avalon is well positioned to generate substantial revenues in the short and long term future.
Avalon Oil & Gas, Inc. (AOGN.OB) Has Numerous Oil & Gas Properties
Avalon Oil & Gas Inc. is an independent domestic oil and natural gas producer. The company’s strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows and production from a portfolio of oil and gas lease properties in Texas, Oklahoma, Louisiana and Arkansas.
Here is a brief overview of some of Avalon Oil & Gas properties:
In Miller County, Arkansas, Avalon owns a 50% working interest in the Dixon Heirs #1, Deltic Farms & Timber #1, and Gunn #1 wells along with associated units and leases. These are mature wells, originally drilled in the 1980s, with stable production. Through recent workovers and production optimization activities in the field, Avalon has doubled production since the acquisition of the property in July 2006.
In the state of Oklahoma, Avalon has a couple properties in Noble County. The company owns an undivided 16% working interest in the Hughes #1 well and surrounding acreage. This well was originally drilled and completed in 1998 and tested 4 Mmcf per day. Following a successful workover, the well’s production has been steadily increasing and the increase is expected to continue. Most recently, the well was producing both oil and gas at a rate of 5 barrels of oil per day and 20 Mcf per day.
Avalon also recently acquired a 10% working interest in a property in Nowata County, Oklahoma. The lease contains several wells not currently in production. Plans to bring the wells back into production are in the final evaluation phase and operations should commence before year-end.
Avalon also owns a 50% working interest in a horizontal Paluxy well located in Wood County, Texas. This well was originally drilled in the early 1990s and is currently shut-in to address a casing leak. The company is considering workover options for the well with the goal of re-establishing production.
Avalon Oil & Gas, Inc. (AOGN.OB) Has Numerous Oil & Gas Properties – Part 2
Avalon Oil & Gas Inc. is an independent domestic oil and natural gas producer. The company’s strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows and production from a portfolio of oil and gas lease properties in Texas, Oklahoma, Louisiana and Arkansas.
Here is a brief overview of a few more of Avalon Oil & Gas properties:
Avalon has a property in Grant Parish, Louisiana. The Grant Parish leasehold consists of the Doris Hall and Fletcher leases. The company owns an undivided 25% interest in both the Doris Hall and Fletcher leases. The entire leasehold has six wells which were drilled in 1979 and had produced in excess of 200 barrels per day of oil. The wells, however, have been shut-in for several years. Avalon has managed to sell over 1,500 barrels of oil over the past six months from these wells.
Avalon also has a 0.7% working interest in the Lake Washington Field in Plaquemines Parish, Louisiana. This property is comprised of three producing wells which produce over 1,000 barrels of oil per day. This field was discovered over 80 years ago and since then has produced approximately 350 million barrels of oil, putting it among the largest oil and gas fields in the US. Avalon will be evaluating additional drilling opportunities in the field next year.
Turning to Texas, Avalon owns a fifty percent working interest in the E.A. Chance #1 and #2 wellbores, and associated 40 acre lease in Camp County, Texas. This is a mature property with these wells having been drilled during the 1950s. The #1 well is currently producing while #2 well is temporarily shut-in pending evaluation of a tubing leak. The #2 well is also under consideration for a conversion into a saltwater disposal well.
Avalon Oil & Gas, Inc. (AOGN.OB) Has Numerous Oil & Gas Properties – Part 3
Avalon Oil & Gas Inc. is an independent domestic oil and natural gas producer. The company’s strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows and production from a portfolio of oil and gas lease properties in Texas, Oklahoma, Louisiana and Arkansas.
Here is a brief overview of the rest of Avalon Oil & Gas properties:
Avalon has a 10% working interest in the New Diana Field, which is located in Upshur County, Texas. The property consists of thirteen wellbores, which include six producing oil wells, three salt water disposal wells and four shut-in or marginally producing wells. The working interest was purchased from an Oklahoma independent oil producer who continues to be a partner in the property.
These wells were originally drilled in the 1960s by various operators. This property produces significant volume of salt water and as a result has a self-contained salt water disposal system. This results in a very low unit cost of salt water disposal, which is important for the company. These mature wells have stable production and produce 25 barrels of oil per day.
Avalon also owns an undivided 15% working interest in the Janssen #1A property, which is located in Karnes County, Texas. This well has been flowing at an average rate of 330 thousand cubic feet of gas per day and producing 10 to 20 barrels of high grade condensate. At present, the well is flowing into the sales line without the need of a gas compressor.
Total reserves for the well are estimated to be 75,000 to 100,000 barrels of condensate and 3 to 4 billion cubic feet of gas. The company has a gas sales contract for the well that fluctuates with the Houston Ship Channel price index and the liquid condensate will be sold at the monthly spot price for product in the regional Texas area. Avalon received their initial revenue distribution for the products sold from the well in July 2008 and this well is expected to produce revenues for many years to come.
Avalon Oil & Gas, Inc.’s (AOGN.OB) Focus on Acquiring Oil Production Enhancing Technology
Avalon Oil & Gas, Inc. is an independent domestic oil and natural gas producer. The company’s strategy is to use efficient reservoir maintenance and innovative oil production enhancing technology on a portfolio of oil and gas properties. Avalon expects this strategy to generate stable cash flows for the company.
Avalon’s technology arm acquires and develops oil production enhancing technologies from early stage licensing partners. The company’s business model is to evaluate the commercialization potential of a technology and its market viability. If warranted, Avalon will then proceed to rapid prototype development and field test of the technology.
One of Avalon’s licensing partners is UTEK, Inc., a global technology transfer company that enables firms to rapidly acquire innovative technologies from universities and research labs worldwide. Through UTEK, Avalon has acquired a few new oil production technologies.
One such technology license acquired by Avalon via UTEK is from researchers at the Lawrence Livermore National Laboratory. This technology involves ’smart oil well borehole casings’ for oil recovery. The smart borehole casing technology uses a densely spaced network of customized casing sensors to monitor critical parameters in a subsurface oil reservoir.
Applications include real-time mapping and monitoring of subsurface fluid composition and distribution in deep oil reservoirs to maximize oil recovery without interfering with normal well operations. Bypassed oil and fluid-flow barriers can be identified and fluid saturation changes can be effectively mapped. Additionally, hydrocarbon recovery and well locations can be optimized.
Avalon Oil & Gas, Inc.’s technology arm acquires and develops oil production enhancing technologies from early stage licensing partners. The company’s business model is to evaluate the commercialization potential of a technology and its market viability. If warranted, then Avalon will proceed to rapid prototype development and field test of the technology.
One of Avalon’s licensing partners is UTEK, Inc., a global technology transfer company that enables firms to rapidly acquire innovative technologies from universities and research labs worldwide. Through UTEK, Avalon has acquired a few new oil production technologies.
One such technology license acquired by Avalon via UTEK is from researchers at the University of Wyoming. This license provides Avalon with exclusive rights to paraffin wax removal technology for improving oil production efficiency. The technology utilizes ultrasonic waves to mitigate deposits of paraffin wax from crude oil.
The technology breaks wax bonds, inhibiting the wax from attaching to the tubing and surface flow equipment. This helps operators maintain optimal oil viscosity, thereby increasing flow rates and production efficiency. A build-up of paraffin wax can actually choke off flow-lines. This technology could lead to a solution for a very expensive problem effecting all oil producers globally.
Avalon Oil Oil & Gas, Inc. (AOGN.OB) Revenues Climb with First Check From Scissortail
Avalon Oil & Gas, Inc., an independent domestic producer/investor of oil and natural gas, announced last month that it has received its first check for gas revenues from Scissortail Energy, an Oklahoma based provider of natural gas midstream services. The payment is for natural gas produced in the East Chandler Field in Lincoln County, Oklahoma, northeast of Oklahoma City, encompassing various wells in which Avalon holds partial interest. It represents the continuation of a climb in revenues for Avalon over the past year, with more expected.
Avalon is an investment company that acquires oil and gas producing properties. In addition, the company’s technology group acquires and develops various oil production technologies. Avalon, through its majority owned subsidiary Oiltek, is building an asset portfolio of innovative technologies to enhance the company’s oil and gas properties. The strategy is to use efficient reservoir maintenance and innovative technologies to generate stable production and cash flows at domestic sites.
Kent Rodriguez, Avalon CEO, detailed the work going on at the East Chandler Field: “We are pleased to report that the workovers of the Grace #2, Grace #5A, and Grace #6 wells have been completed. Avalon began selling gas from the Grace #2 in January, the Grace #5A in February, and the Grace #6 in April, and we have received our first revenue check from production on the Grace #2 and Grace #5A wells. We are excited to have completed the first portion of our initial workover program in the Grace Field. Given the encouraging price movement for natural gas, production from the Grace wells will have a significant effect on Avalon’s revenue stream going forward.”
Avalon holds the following interests in the East Chandler wells:
• 30.50% working interest and a 23.88% net revenue interest in the Grace #2
• 37.50% working interest and 23.72% net revenue interest in the Grace #5A
• 33.50% working interest and a 25.69% net revenue interest in the Grace #6
Avalon is continuing to acquire additional fractional working interests in each well. In addition, the company is currently looking at leases in southern Kansas, Texas, Louisiana, and other sites in Oklahoma.
Avalon Oil & Gas, Inc. (AOGN.OB) Management Pleased With Energy Pricing and Development Opportunities
Avalon Oil & Gas, Inc., an independent oil and gas investment company, yesterday told investors that the recent price rally in oil is encouraging for the industry as well as for Avalon’s near term acquisition plans.
“Since December, we’ve seen oil prices pass one ceiling after another, going from $33 per barrel to more than $72 per barrel,” commented Kent A. Rodriguez, Avalon’s CEO. “This translates into significant improvement in margins for producers like us,” he added. “Our shareholders benefit as well, as our oil reserve assets are valued in excess of $8,000,000 in this environment.”
He continued, “During the past six months, there has been a substantial improvement in supplier pricing for energy production companies. The prices of steel casing, rig time, site prep work, drilling costs, leasehold and related production costs have come down to a more reasonable level. Also, the number of contractors available for drilling has increased rapidly over the past quarter as the amount of permits has dropped.”
“These factors are positively impacting Avalon’s bottom line as the company expands its leasehold acreage and production operations. We are currently very excited about an oil and gas producing property in central Oklahoma, and hope to negotiate a letter of intent in the next few weeks,” added Rodriguez.
As of today, Avalon’s growing energy portfolio includes production assets of 61 producing oil and gas wells in 5 states. The company intends to continue expanding capital deployment through the acquisition of oil and gas producing properties in Oklahoma and West Texas.
Avalon Oil & Gas, Inc.’s (AOGN.OB) Strong Leadership Team
Avalon Oil & Gas Inc. is an independent domestic oil and natural gas producer. The company’s strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows and production from a portfolio of oil and gas leases. Avalon currently has leases in Texas, Louisiana, Oklahoma and Arkansas.
Avalon Oil & Gas is led by a strong leadership team which consists of two officers and two directors.
Kent Rodriguez, CEO – Mr. Rodriguez joined the company as president and CEO in January 1997. Since 1995, he has been the managing partner of Weyer Capital Partners, a Minneapolis-based venture capital company. From 1985 to 1995, Mr. Rodriguez was employed in various capacities by the First National Bank of Elmore, Minnesota.
Jill Allison, Vice-President – Ms. Allison brings over 20 years of diversified management experience in business development and technology commercialization. She is currently in charge of Avalon’s new technology initiatives. Prior to joining Avalon, Ms. Allison managed a technology strategy consulting practice with focus in the market convergence of physical and IT security industries. Her venture development background includes market leadership positions with Monsanto, Pinkerton’s, Cylink Corporation and Iridian Technologies.
Douglas Barton, Director – Mr. Barton has served as a director of the company since December 2005. From 1987 to the present, he has been the president and sole owner of Venture Communications Inc., a private promotion and marketing consulting firm. He was also a director of XDOGS.com from 1998 to February 2005.
Thad Kaplan, Director – Mr. Kaplan has served as a director of the company since December 2005. He is currently an independent food and beverage industry consultant. From 1997 to 2002, Mr. Kaplan was the owner of BS Holdings Inc., a food and beverage industry holding company. He is currently a director of Universal Property Development and Acquisition Corp. (OTCBB: UPDA), a holding company that provides funding through joint ventures with owners of proven oil and gas reserves and cutting edge technologies.
Avalon Oil & Gas Inc. (AOGN.OB) Expands Ownership of Grace Wells through Acquisition of Bedford Energy Assets
Avalon Oil & Gas Inc. is an oil and gas investment company focused on the acquisition of producing properties and the development of oil production-enhancing technologies. In accordance with its business strategy, the company recently announced a letter of intent to acquire all of Bedford Energy Inc.’s oil and gas producing assets.
Said assets are located in the East Chandler Field, Lincoln County, Okla., and increase Avalon’s current interest in the Grace #2 well, which it acquired in June 2008. Per the agreement, Avalon will also acquire working interests in Grace #s 1, 3, 5A and 6 wells. Avalon’s Grace #2 well is currently producing 350 MCF of gas per day; in combination with the recently acquired wells, the company anticipates significantly increasing its revenue.
“We are excited to complete this expansion of our ownership in the Grace #2, the four other producing wells, the other Bedford Energy Field Assets, and the adjoining undeveloped acreage, in Lincoln County, Oklahoma,” Avalon’s CEO, Kent Rodriguez stated in the press release. “This acquisition will increase our revenues nearly three-fold. Avalon will continue to increase our ownership in these wells in the coming months.”
The company also stated its intent to acquire Prue Sand potential in the Grace #3, Grace #5A and the Grace #6 wells, with estimated reserves at 33,000 barrels of oil and 111 MMCF of gas.
Avalon Oil & Gas, Inc. (AOGN.OB) Lines Up Strong Advisory Board
Avalon Oil & Gas, Inc., an independent investment company engaged in the acquisition of oil and gas producing properties, is fortunate to have one of the strongest advisory boards in the industry. Each member brings a commanding combination of education and experience, providing Avalon with strong guidance and support in its ongoing investments.
• William D. Anderson – provides ongoing counsel to Avalon’s senior management and its board of directors. He is a seasoned veteran, with 28 years of technical and financial experience, including business development, planning, and management in the oil and gas industry. He currently heads an oil and gas consulting business, and has held senior level positions in the industry, including Exxon. He holds an M.E. in Petroleum Engineering from Tulane, and M.S. in Engineering Mechanics from Columbia.
• Glen P. Harrod – is a senior working manager in the oil and gas industry, bringing over 15 years of experience in the processing and marketing of crude oil and natural gas. He is currently Manager of Business Development for National Fuel Marketing Co. He has an MBA in Finance from the University of Houston, and a B.S. in Mechanical Engineering from Tulane.
• John Rhodes – has 26 years of prospect development and operations experience, including international work as a Senior Geophysicist for Mobile Oil, and as Vice President at DeGolyer & MacNaughton. He is currently the managing partner of several small oil and gas partnerships. He has an M.S. in Geophysics from Pennsylvania State University.
• Mark Oliver – has 25 years of oilfield operation experience, including extensive work with Marathon/TXO. He is currently the head of KROG Partners, focused on oil and gas well acquisition and development.
• Billy D. Graham – has 34 years of oilfield service business operations experience. He established the Gramco, Inc., oilfield service company in 1986, providing construction and operations services to a wide range of large and small oil companies.
• Gary Browning – has 30 years of oil and gas industry experience, covering all aspects of the energy sector, including power plants, pipelines, exploration, and refining, both nationally and internationally.
• Menno Wiebe – has 36 years of energy experience, and advises Avalon on Latin American petroleum development projects. He was most recently Vice President of Exploration for Solana Petroleum Exploration in Columbia.
Avalon Oil & Gas, Inc. (AOGN.OB) Poised to Benefit from Rising Oil Prices
According to the Department of Energy’s Office of Fossil Energy, the United States has more than 43 billion barrels of oil from stranded oil reserves and mature oil and gas wells. The key for any oil and gas producer looking for the next successful venture is knowing where to look and having the expertise, crew and equipment to tap into these reserves.
The demand for crude oil, natural gas and petroleum-based products continues to soar, with the United States, China and India leading in the cry for more energy. While many markets face downturn in the midst of a recession, the oil and gas industry remains a furious force; Exxon Mobile, BP and Royal Dutch/Shell and other oil and gas companies are turning big profits as oil prices continue to climb.
Avalon Oil & Gas Inc. focuses on acquiring mature oil and gas wells in Kansas, Oklahoma, Texas and Louisiana. The independent oil and gas producer uses efficient reservoir maintenance and technology to generate a stable cash flow as it acquires oil and gas leases poised to benefit the company and its shareholders. Avalon continues to expand its lease properties and production operations as it focuses its operations on capitalizing on the United States’ vast, untapped reserves.
Avalon Oil & Gas Inc. (AOGN.OB) Seeks out Strategic Partnerships to Develop Strong Portfolio of Oil and Gas Technologies
The oil and gas industry is more than explore and drill. Meeting demand with supply creates pressure to develop innovative technologies that will accelerate the oil production process. With increasing demand for oil, and the competitive nature of the market, innovative technologies for upfront and back-end operations represent a unique investment opportunity.
Avalon Oil & Gas Inc. is currently seeking out those opportunities and is building a portfolio of new technologies for the oil and gas industry. To execute this mission, Avalon has entered into a relationship with UTEK Inc., a technology transfer company that acquires innovative technologies from universities and research labs around the world.
This strategic alliance enables Avalon’s commercialization team to identify promising oil production enhancement technologies through UTEK’s resources, and allows it to finance the acquisition for equity. Avalon’s technology group acquires, then develops oil production enhancing technologies by seeking out early-stage licensing partners with innovative systems and products. The company’s strategy is to evaluate the commercialization potential and value, compare it against current products and market demand, generate a prototype development, then test the technology to determine its market viability.
Avalon Oil & Gas, Inc. (AOGN.OB) Acquiring Oil Production Enhancing Technologies
Avalon Oil & Gas Inc. is an independent domestic oil and natural gas producer. The company has acquired a portfolio of leases in Texas, Oklahoma, Louisiana and Arkansas. Avalon’s strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows for the company.
Avalon’s technology subsidiary acquires and develops oil production enhancing technologies from early stage licensing partners such as UTEK Inc. UTEK is a technology-transfer company that enables firms to rapidly acquire innovative technologies from universities and research laboratories worldwide.
To date, Avalon has acquired the license for two technologies. The first technology, licensed from the University of Wyoming, provides Avalon with exclusive rights to paraffin wax removal technology for improving oil production efficiency. The technology utilizes ultrasonic waves to mitigate deposits of paraffin wax from crude oil. This technology helps prevent precipitate from forming on production tubing walls and surface flow equipment, as well as helps operators maintain optimal oil viscosity thereby increasing flow rates and production efficiency.
The second technology license acquired by Avalon is from the Lawrence Livermore National Laboratory. This technology involves ’smart oil well borehole casings’ for oil recovery. The technology uses a densely spaced network of a range of casing sensor types to monitor critical parameters in a subsurface oil reservoir. Data from the sensors is combined with data fusion technology to yield real-time knowledge of the reservoir and processes such as primary and secondary oil recovery.
Applications include real-time mapping and monitoring of subsurface fluid composition and distribution in deep oil reservoirs. Bypassed oil and fluid-flow barriers can be identified and fluid saturation changes can be mapped. All of this will allow the company to maximize hydrocarbon recovery without interfering with normal well operations.
Avalon hopes to make additions to their portfolio of oil enhancing technologies in the near future.
Avalon Oil & Gas, Inc. (AOGN.OB) Positioned to Benefit From Rising Oil Prices
Avalon Oil & Gas Inc. is a domestic oil and natural gas producer with leases currently in Texas, Oklahoma, Louisiana and Arkansas. The company’s strategy is to use efficient reservoir maintenance and innovative oil recovery technologies on previously abandoned wells in order to produce much-needed hydrocarbon energy.
Avalon believes that global conditions in the energy market present the company with an attractive investment opportunity for proven technologies which will expand oil production efficiency in already-established oil fields. There is definitely oil to be recovered – according to the Department of Energy there is the potential to recover over 43 billion barrels of additional oil from stranded oil reserves and mature oil wells in the United States.
Finding additional oil will be important in the upcoming years. Why? The same old story – supply and demand. The supply of oil is steadily declining while the demand for oil is steadily rising.
Even before the onset of the financial crisis, oil production from many major fields globally in the Mid-East, Russia, and even Mexico’s once-giant Cantarell oil field had gone into sharp decline. And the financial crisis has only exacerbated the problem. Oil companies, both large and small, are having difficulties obtaining financing to operate their business.
In many areas, including the U.S., exploration and drilling activities have dropped by about 40%. Even giant firms have been affected – Brazilian oil giant Petrobras, who owns much of the most exciting oil discovery in decades, had problems finding financing. Russian gas giant Gazprom had trouble getting financing to even perform maintenance work on their facilities.
The International Energy Agency has said that the world needs in excess of $26 trillion in energy investments over the next 21 years in order to meet future demand. That investment is just not happening. All of this points to reduced oil production for years to come.
On the demand side, the International Energy Agency says that by 2030 the demand for oil will increase to 106 million barrels per day from the current level of around 83 million barrels per day. Why? Mainly because of the emerging economies such as China.
An example of this increased demand is the latest car sales data from China where sales in June rose 36.5% from last year to 1.14 million. Sales for the first half of 2009 were up 17.7% to 6.1 million vehicles. For the first half of 2009, U.S. sales fell to only 4.8 million cars. The engine of economic growth seems to have shifted eastward.
Despite some of Wall Street’s skepticism, the supply/demand outlook for oil is positive. This bodes well for the future of firms such as Avalon Oil & Gas which will be producing the precious commodity.
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