MINNEAPOLIS, May 10, 2010 /PRNewswire via COMTEX/ -- Avalon Oil & Gas, Inc., ("Avalon") (OTC Bulletin Board: AOGN) announces that it plans to begin a workover of the Moody 31-9 #5 property in Lamar County, Mississippi.. On February 2, 2010, Avalon entered into an agreement with Bayside Petroleum Company, Inc., ("Bayside") (Pink Sheets: BYSD) to purchase an 18.75% working interest in Bayside's Baxterville Field Prospect in Lamar County, Mississippi.
The two hundred (200) acre leasehold contains three wellbores; two that are equipped for production, and a salt water disposal well.
The Baxterville Field spans over 13,000 acres, with more than 300 producing wells. The field has produced 262 million barrels of oil and 450 billion cubic feet of gas, primarily from the Tuscaloosa formation. The wellbores on the Baxterville Field Prospect have produced from the Lower Tuscaloosa Sand at a depth of 8,800 feet. The Tuscaloosa oil in this field has a very low gravity, around 17 API, and is produced with a large volume of saltwater. The three wells have produced more than 500,000 barrels of oil and were producing 200 barrels of fluid, with a 5% oil cut when they were shut-in in 2006.
"We are excited to begin the workover of the Moody 31-9 #5," said Avalon's CEO, Kent A. Rodriguez. "We are waiting for a workover rig to move on the Moody 31-9 # 5. As soon as the rig is on location we will pull all existing downhole equipment, clean out the wellbore, run a gamma ray log, re-perforate the Upper Tuscaloosa zone, re-run tubing and test the flow rate for initial fluid entry rates. If this operation is successful, we will test the integrity of the salt water disposal well, install a hydraulic lift system and begin production. We hope to increase the fluid recovery to 2,000 barrels of fluid per day, and maintain an oil cut of at least 6%. If we can maintain production at this level, our monthly production will increase by 40%," said Rodriguez.
About Avalon Oil & Gas, Inc. Avalon Oil & Gas is an oil and gas company engaged in the acquisition and development of producing oil and gas properties. In addition, Avalon's technology group acquires and develops energy production enhancing technologies. Through Oiltek, Inc., Avalon's majority-owned subsidiary, Avalon is building an asset portfolio of innovative technologies in the energy industry to maximize enhancement opportunities. To learn more about AOGN, please visit: www.avalonoil.com.
About Bayside Petroleum Company, Inc. is an energy exploration, development and production company in the process of building oil & gas reserves and production in some of the most prolific hydrocarbon bearing regions of the United States.
Specializing in the reworking of wells in oil and gas fields with proven reserves to enhance production, Bayside is well positioned to substantially increase its proven reserves, cash flow and shareholder value over the next 12 to 18 months. To learn more about BYSD, please visit: www.baysidepetroleum.com.
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.avalonoil.com.
SOURCE Avalon Oil & Gas, Inc.
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Mississippi INDUSTRY KEYWORD: OIL
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