Avalon Management Positive on Energy Pricing and Development Opportunities
Date : 06/16/2009 @ 11:00AM
Source : Business Wire
Stock : Avalon Oil & Gas, Inc. (AOGN)
Quote : 0.019 0.0034 (21.79%) @ 12:19PM
Avalon Management Positive on Energy Pricing and Development Opportunities
Avalon Oil & Gas, Inc., (Avalon) (OTCBB: AOGN) an independent oil and gas investment company views the recent price rally in oil as encouraging for the industry and for Avalon’s near term acquisition plans.
“Since December, we’ve seen oil prices pass one ceiling after another, going from $33 per barrel to more than $72 per barrel,” commented Kent A. Rodriguez, Avalon’s CEO. “This translates into significant improvement in margins for producers like us,” he added. “Our shareholders benefit as well, as our oil reserve assets are valued in excess of $8,000,000 in this environment.”
Rodriguez was favorable about market conditions in an address to shareholders. “During the past six months, there has been a substantial improvement in supplier pricing for energy production companies. The prices of steel casing, rig time, site prep work, drilling costs, leasehold and related production costs have come down to a more reasonable level. Also, the number of contractors available for drilling has increased rapidly over the past quarter as the amount of permits has dropped.”
He continued, “These factors are positively impacting Avalon’s bottom line as the company expands its leasehold acreage and production operations. We are currently very excited about an oil and gas producing property in central Oklahoma, and hope to negotiate a letter of intent in the next few weeks,” added Rodriguez.
Avalon’s growing energy portfolio now includes production assets of 61 producing oil and gas wells in 5 states. The company will continue to expand capital deployment through the acquisition of oil and gas producing properties in Oklahoma and West Texas.
About Avalon Oil & Gas, Inc.
Avalon Oil & Gas is an oil and gas company engaged in the acquisition and development of producing oil and gas properties. In addition, Avalon’s technology group acquires and develops energy production enhancing technologies. Through Oiltek, Inc., Avalon’s majority-owned subsidiary, Avalon is building an asset portfolio of innovative technologies in the oil and gas industry to maximize enhancement opportunities.
Forward-Looking Statements
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Avalon Oil & Gas, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
FOR FURTHER INFORMATION, please visit the company’s website at www.avalonoil.com.
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