Avalon Oil & Gas, Inc. issued an oil and gas operations update on its properties in the United States, where the company is active in Oklahoma and several other onshore areas.
Avalon Oil & Gas, Inc. is developing leasehold in the East Chandler Field, located in Lincoln County, Oklahoma. The company reported that the Grace #2 and the Grace #5A wells have been placed back onto production. The Grace #2 well has been producing since August 2010 and the Grace #5A well since January 2011.
Avalon Oil & Gas, Inc. has a working interest of 76.8% and a net revenue interest of 52.7% in the Grace #2 well and a 75% working interest and 51.5% net revenue interest in the Grace #5A well. The company reported that the combined production from the two wells was 200,000 cubic feet of natural gas and one barrel of oil per day.
Avalon Oil & Gas, Inc. is also attempting to resume commercial oil and gas production from the Grace #6 well, which is also located in the East Chandler Field.
Avalon Oil & Gas, Inc. reported that it has completed the due diligence process on assets owned by Fossiltek, Inc., and is currently negotiating a purchase agreement with the company. Fossiltek, Inc. owns producing properties in the Anadarko Basin of Oklahoma.
For more information on the company, go to www.avalonoil.com