Avalon Oil & Gas, Inc., www.avalonoil.com – an acquisition and development-focused producer of oil and gas, which also seeks out and refines energy production-enhancing technologies (via majority-owned subsidiary Oiltek, Inc.), entered into a letter of agreement to acquire an undivided 100% working interest in a 320-acre Vernon County, Missouri leasehold.
With 70+ wellbores, 20 of which are production-equipped, AOGN is in a very good position to tap the estimated 8M+ barrels of oil trapped in the southwest and east-central portions of the lease due to its command of emergent recovery maximization technologies.
The Company’s strategy, of leveraging a growing portfolio of production enhancement technologies to exploit reserves otherwise ignored via acquisition and development, has already given AOGN a strong foothold in the sector.
Vernon County has been outputting oil into the economy for 57 years, with Shell and Phillips both achieving sporadic success tapping into the Bluejacket and Warner Sandstones, and steam injection methods, begun in the 80’s, eventually yielding decent capacity.
The Ida–Fauvergue leasehold has been in limited production, using cyclic steam injection-based recovery, for 31 years, yielding 325k barrels to date.
Mega West and Colt Energy have been prepping for steam-injected recovery on their Vernon County leaseholds, testing core samples and developing the implementation profile for enhanced production units.
Work in 2004, by the University of Missouri-Rolla, took the production window in this type of configuration to a new level with the study of microbial catalysts for enhancing oil and gas recovery, and AOGN has retained both a microbiologist and a petroleum engineer with vast first-hand experience in the Bluejacket and Warner Sandstones.
Core samples from 65 of the wells on the Ida–Fauvergue, drilled in the 80’s, and its production history – in conjunction with production schematics from proven reserves on proximal land – are being rigorously vetted in anticipation of an aggressive production attitude.
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