Avalon Oil & Gas Inc. is an oil and gas investment company focused on the acquisition of producing properties and the development of oil production-enhancing technologies. In accordance with its business strategy, the company recently announced a letter of intent to acquire all of Bedford Energy Inc.’s oil and gas producing assets.
Said assets are located in the East Chandler Field, Lincoln County, Okla., and increase Avalon’s current interest in the Grace #2 well, which it acquired in June 2008. Per the agreement, Avalon will also acquire working interests in Grace #s 1, 3, 5A and 6 wells. Avalon’s Grace #2 well is currently producing 350 MCF of gas per day; in combination with the recently acquired wells, the company anticipates significantly increasing its revenue.
“We are excited to complete this expansion of our ownership in the Grace #2, the four other producing wells, the other Bedford Energy Field Assets, and the adjoining undeveloped acreage, in Lincoln County, Oklahoma,” Avalon’s CEO, Kent Rodriguez stated in the press release. “This acquisition will increase our revenues nearly three-fold. Avalon will continue to increase our ownership in these wells in the coming months.”
The company also stated its intent to acquire Prue Sand potential in the Grace #3, Grace #5A and the Grace #6 wells, with estimated reserves at 33,000 barrels of oil and 111 MMCF of gas.
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