Avalon Oil & Gas, Inc., an independent domestic producer/investor of oil and natural gas, announced last month that it has received its first check for gas revenues from Scissortail Energy, an Oklahoma based provider of natural gas midstream services. The payment is for natural gas produced in the East Chandler Field in Lincoln County, Oklahoma, northeast of Oklahoma City, encompassing various wells in which Avalon holds partial interest. It represents the continuation of a climb in revenues for Avalon over the past year, with more expected.
Avalon is an investment company that acquires oil and gas producing properties. In addition, the companyâ€™s technology group acquires and develops various oil production technologies. Avalon, through its majority owned subsidiary Oiltek, is building an asset portfolio of innovative technologies to enhance the companyâ€™s oil and gas properties. The strategy is to use efficient reservoir maintenance and innovative technologies to generate stable production and cash flows at domestic sites.
Kent Rodriguez, Avalon CEO, detailed the work going on at the East Chandler Field: â€œWe are pleased to report that the workovers of the Grace #2, Grace #5A, and Grace #6 wells have been completed. Avalon began selling gas from the Grace #2 in January, the Grace #5A in February, and the Grace #6 in April, and we have received our first revenue check from production on the Grace #2 and Grace #5A wells. We are excited to have completed the first portion of our initial workover program in the Grace Field. Given the encouraging price movement for natural gas, production from the Grace wells will have a significant effect on Avalonâ€™s revenue stream going forward.â€
Avalon holds the following interests in the East Chandler wells:
â€¢ 30.50% working interest and a 23.88% net revenue interest in the Grace #2
â€¢ 37.50% working interest and 23.72% net revenue interest in the Grace #5A
â€¢ 33.50% working interest and a 25.69% net revenue interest in the Grace #6
Avalon is continuing to acquire additional fractional working interests in each well. In addition, the company is currently looking at leases in southern Kansas, Texas, Louisiana, and other sites in Oklahoma.
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