Avalon Oil & Gas Inks Deal to Acquire Texas Acreage


Boyle Field
(Click to Enlarge)
Avalon Oil & Gas has signed a letter of intent to acquire a 50 percent working interest, in an oil and gas lease in Starr County, Texas, from Canyon Creek Oil and Gas. The 266.73-acre property has four shut-in oil and gas wells.

The lease is located in the Boyle Field, an oil field that has produced nearly 1.3 million barrels of oil. Avalon conservatively estimates that the field contains a similar amount of remaining oil reserves and 242,900 mcf of gas.

Avalon and Canyon Creek will hire an engineering firm to oversee the implementation of a water flood project to recover the maximum amount of oil from the reservoir. Once the water flood procedure is fully operational, Avalon projects monthly cash flow--assuming prices of $60/barrel of oil and $6.50/mcf of gas--at nearly $500,000, after deducting for lease royalties, operating expenses, and taxes.

Avalon plans to drill and complete 10 additional wells during the next 12 months to further develop the oil reserves. Oil production is projected to reach 1,000 barrels of oil per day when the lease is fully developed.

Canyon Creek is a subsidiary of Universal Property Development and Acquisition Corp..

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Business Development Analyst
Expertise: Business Analyst|Business Development
Location: Chesapeake, VA
 
Attorney I
Expertise: Contracts Administration|Legal
Location: Houston, 
 
Project Engineer/Project Manager
Expertise: Project Management
Location: Baton Rouge, 
 
search for more jobs

Brent Crude Oil : $55.49/BBL 2.45%
Light Crude Oil : $52.42/BBL 2.04%
Natural Gas : $3.2/MMBtu 5.04%
Updated in last 24 hours