Avalon Oil & Gas Completes Texas Acquisition
Avalon Oil & Gas, Inc. has completed the purchase and acquisition of two oil properties from KROG Partners, LLC pursuant to a previously announced Letter of Intent (LOI). Under the terms of the agreement, Avalon Oil & Gas has acquired a fifty percent (50%) working interest in the J.C. Kelly wellbore, a 121.9 acre lease in Wood County, Texas, in addition to the E.A. Chance #1 and #2 wellbores, a 40 acre lease in Camp County, Texas and all of the surface equipment for the properties.
It is anticipated that the J.C. Kelly wellbore will initially produce 10 barrels of oil per day once back on line, while the E.A. Chance #1 well is currently producing 5 barrels of oil per day. Upon the execution of a joint operating agreement Avalon and KROG will engage engineers and technical personnel to complete the workovers on each of the properties in order to expand production. KROG will retain a fifty percent (50%) working interest and will operate the two properties.
Avalon's Chief Executive, Kent Rodriguez, commented, "We continue to make significant inroads in terms of increased production capacity on lease assets we believe to have low-risk and high production profiles and are continuing our efforts to locate and acquire new lease opportunities consistent with our growth-at-a-reasonable-price philosophy." He continued, "We believe that with enhancements, production profiles and capabilities on these properties can be ratcheted up dramatically, allowing this acquisition to effectively 'pay back' its principal purchase price within twelve months. We are currently evaluating other opportunities with similar return profiles and anticipate announcing more developments shortly."
Avalon Oil & Gas, Inc. is an opportunistic acquirer and operator
of producing oil and gas properties that possess high quality and low
risk profiles and the opportunity to leverage additional production
through property enhancement.
- Avalon Picks Up Acreage in Anadarko Basin (Sep 16)
- Avalon Enters LOI to Acquire Leasehold in Vernon County (Jul 12)
- Avalon Acquires Leasehold in Mississippi (Feb 02)