Avalon Ups Production Rate at Grace No. 2 Well in Oklahoma

Avalon Oil & Gas has provided an update on workover operations in the East Chandler Field, Lincoln County, Oklahoma, and reported that gas production from the Grace #2 well has averaged 230 MCF per day for the past 30 days.

"We have increased the choke on the Grace #2 and will begin producing the well at 400 MCF per day for the next few weeks, monitoring the downhole pressure in the well to determine if it is impacted by the increased flow rate," said Avalon's CEO, Kent A. Rodriguez. "Other Red Fork wells in the area have not experienced a significant decline in downhole pressure with an increase in flow rates," Rodriguez added.

"Even in the current price environment, production from the Grace #2 production will have a marked effect on Avalon's revenue stream," he said.

Avalon holds a 30.50% working interest and a 23.876875% net revenue interest in the Grace #2, is continuing to acquire additional fractional working interests in the well.