Avalon Oil & Gas, Inc. has increased its working interest to 7.25 % in the Janssen #1A gas well in Karnes Country, Texas. The Janssen #1 well has maintained a production rate of 215 MCF and 5 barrels of condensate per day since the well was completed in May 2007. The Janssen #1A well is located in an area that is very active in gas and oil production. Total reserves are estimated to be 75,000 to 100,000 barrels of condensate and 3 to 4 billion cubic feet (BCF) of gas. The well was perforated at the 10,300 foot interval in the Roeder Sand (Wilcox Sand Series.)
Kent A. Rodriguez, Avalon's CEO said, "We are pleased to increase our ownership interest in this steady producing well, which has been delivering an internal rate of return exceeding 48%." He added "With the consistent returns we have experienced on the Janssen well to date, this asset represents a great performer in our growing portfolio of oil and gas producing properties."
The Janssen has a gas sales contract that fluctuates monthly with the Houston Ship Channel price index. Liquid condensate is sold at the monthly spot price for product in the regional Texas area. Avalon's partners in the Janssen well include Tradestar Resources, Hot Springs, AR; Bedford Energy Oklahoma City, OK, and Penasco Petroleum, Austin, TX. PROEX Energy Management is the operator of the well.
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