Avalon has entered into a Letter of Intent with Fossiltec to purchase non-operating working interests in five (5) producing oil wells and thirty-three (33) producing gas wells, for a combination of cash and newly issued common stock. The properties are located in the Anadarko Basin of Western Oklahoma, in the counties of Roger Mills, Grady, Caddo, Custer, Blaine, and Beckman. They are currently producing 6 Barrels of Oil and 200,000 Cubic Feet of Gas per Day.
"We are very excited about this acquisition and plan to close this transaction before October 15, 2010. The reserves on these properties exceed 505,000 MMCF of gas and 8,500 Barrels of Oil, with a well established decline curve and a production history ranging between 5 and 30 years. We project our income from these properties will average $20,000 per month for the next three years," said Avalon's CEO, Kent A. Rodriguez. "In addition, we are actively reviewing several other producing oil and gas properties for near-term acquisition," added Rodriguez.
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