announced today that it has completed the acquisition of the Lacey Leasehold from C & M Exploration, LLC (C & M). The properties encompass a twenty five percent (25%) working interest in East Half of Section Twenty-Four (24), Township Nineteen North (19N), Range Nine West (9 W), Kingfisher County, Oklahoma ("The Leasehold"). The Leasehold has four (4) potential re-entry wellbores and two (2) potential drilling locations that represent three hundred twenty (320) acres.
The York #-3 was originally drilled in 1981, plugged and abandoned in 1991 after producing 137,000 barrels of oil and 175,000 MCF of gas, without testing and producing the 1st Bromide Sandstone, the Viola Limestone, Mississippi Limestone and the Cleveland Sandstone.
The York #24-2 was originally drilled in 1981, plugged and abandoned in 2002 after producing 136,999, barrels of oil and 905,000 MCF of gas without testing and producing the Viola/Hunton Limestone (s), the Mississippi Limestone and the Redfork Sandstone.
C & M's Charles Crawford commented, "We will re-enter the York #-3; deepen the well one hundred feet (100) and test the 1st Bromide Sandstone, as well as stimulate the Simpson Dolomite with a spearhead acid treatment and small acid fracture, as the well was not originally stimulated. We estimate probable remaining total reserves of 57,500 barrels of oil and 600,000 MCF." He added, "The York #24-2 was producing 6-7 barrels of oil and 50-70 MCF of gas per day when it was prematurely plugged and abandoned. We will re-establish and enhance production in the zones that were previously abandoned. We estimate probable remaining total reserves of 47,500 barrels of oil and 600,000 MCF of gas."
CEO Kent Rodriguez of Avalon Oil & Gas commented "We are delighted to be closing on our third oil and gas property this year and look forward to closing on several similar properties in the coming weeks. We will continue to grow our company through favorable oil producing properties with minimal investment, while maximizing production revenues using modern technology on our steadily expanding oil portfolio."
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 in the release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This is material information only and is not an offer or solicitation to buy or sell the securities.
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