MINNEAPOLIS, July 9, 2013 (GLOBE NEWSWIRE) -- Avalon Oil and Gas, Inc. (Avalon) (OTCBB:AOGN) today announced that Recon Technology, Ltd, (Nasdaq:RCON) ("Recon") a leading Chinese non-state-owned oilfield services provider, has purchased 2,800,000 shares of Avalon's common stock. After this investment, Recon will own 32.22% of Avalon's outstanding shares.
Recon Technology has provided oilfield services and products to automate and enhance the extraction of petroleum in China, including well service, production and field service for the past ten (10) years. Recon has developed specialized proprietary software and hardware to manage the oil extraction process in real-time, which significantly reduces extraction costs. Their technology increases the efficiency and profitability of oil and gas companies by enabling them to monitor, manage and control petroleum extraction, increases the amount of petroleum extracted and reduces impurities in extracted petroleum. China's oil and gas industry is dominated by three state-owned holding companies. CNPC and Sinopec are two (2) of Recon's primary customers. Recon has provided services to Sinopec since 1998 and CNPC since 2000, and have conducted automation projects for approximately 80% of both CNPC and Sinopec's oil and gas fields, covering three of China's four highest producing oil fields in Daqing, Shengli and Xinjiang. Recon was the first Chinese non-state owned oil and gas service company to be listed on NASDAQ.
"We are very excited to have Recon as a major shareholder and strategic investor," said Kent Rodriguez, Avalon's CEO. He added, "The funds from their investment will be used to complete the workover of 7 wells on the Moody and West Lease, Duval County, Texas and to acquire additional oil and gas producing properties."
Mr. Yin Shenping, CEO of Recon, said. "We are pleased to invest in Avalon as we agree with the company's development strategies and operations and see the opportunity for significant growth." He added, "We have great confidence in Avalon's ability to expand their existing portfolio of oil and gas producing properties, and we like their business model of investing in underdeveloped properties with stable cash flows and significant upside potential." Mr. Yin continued, "Recon is eager to work with US oil and oilfield service companies to develop markets beyond China. This is our first investment in a US company, and it's a significant milestone in our international development."
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, or contact:
|Avalon Oil & Gas, Inc., Minneapolis|
|Kent Rodriguez, CEO|
Source:Avalon Oil & Gas, Inc.