Avalon Reports Janssen #1A Production Numbers for June 2007

Avalon Oil & Gas produced 8,062 MCF of gas and 163 Barrels of condensate in the Janssen #1A, Karnes County, Texas in June 2007. Avalon owns a 15% working interest in the well. The well is operated by Tradestar Resources.

The well was perforated at approximately the 10,300-foot interval in the Roeder Sand (Wilcox Sand Series). The well was perforated with 6,000 feet of water fluid in the tubing to help prevent any extreme gas pressure blowing the perforation tools up the hole. The well has been flowing at an average rate of 250 MCF per day, along with 10 barrels of high-grade condensate. "We are very pleased with the initial production from this well", stated Avalon CEO, Kent Rodriguez.

At present the well is flowing into the sales line without the need of a gas compressor. It is anticipated that a small gas compressor will be required to maintain a consistent daily flow rate. This is to prevent the possibility of not being able to overcome the pipeline pressure being too high for the wells' natural flowing pressure to enter into the sales line.

The Janssen # 1A has a gas sales contract that fluctuates monthly with the Houston Ship Channel price index. The liquid condensate will be sold at the monthly spot price for product in the regional Texas area. Avalon will receive its first revenue distribution in July for the hydrocarbon products sold from the Janssen #1A well.

Total reserves are estimated to be 75,000 to 100,000 barrels of condensate and 3 to 4 BCF of gas (billion cubic feet of gas). The well is located in an area that is very active in gas and oil production. There are several nearby wells that produce natural gas in excess of over 1 million cubic feet per day. This well should produce revenues for many years to come.