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.â€™s oil and gas producing assets.
Said assets are located in the East Chandler Field, Lincoln County, Okla., and increase Avalonâ€™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. Avalonâ€™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.
â€œWe 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,â€ Avalonâ€™s CEO, Kent Rodriguez stated in the press release. â€œThis acquisition will increase our revenues nearly three-fold. Avalon will continue to increase our ownership in these wells in the coming months.â€
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.
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