Avalon Expands Oil Recovery Technology Portfolio.

MINNEAPOLIS -- Avalon Oil & Gas, Inc., (Avalon) (OTCBB: AOGN) (FWB: A3MA.F) announced today that it has signed a letter of intent to license IMIX International, Inc.'s BIO-CAT[TM] Well and Pipeline Cleaner (BWPC) technology. The BWPC technology[TM] is an enzyme based formulation for the improvement and increase of the extraction of oil and other hydrocarbons from underground reservoirs. Through this license, Avalon now holds the worldwide exclusive rights to the BWPC technology. Included with the right to utilize the BWPC technology is the right to sublicense, sell and resell the use of the technology for enhanced oil recovery and hydrocarbon extraction.

Field tests have confirmed that the application of the BWPC technology on oil wells which have shown reduced production over time has resulted in production rate increases from 35% to over 100%. The BWPC product is a specialty enzyme based, natural agent containing colloidal suspension with no biocide additives. Unlike acid or other chemical solvent treatments, there are no bacteria or toxic solvents in the BWPC product. The product is nontoxic to the environment and is harmless to human, animal and marine life. In addition to the improved environmental aspects of the product, the BWPC technology is significantly more cost effective and the impact of its use is sustained for several months before reapplication treatments are required.

Avalon is currently developing a detailed plan to test the performance of the BWPC technology on wells in which Avalon has a controlling interest. Included will be the collection of extensive data to confirm the results of the initial field tests on production wells and to document and quantify the utility of the product. Initial results are expected this year with the application of the oil recovery technology expanding over time.

One of Avalon's strategies is to add significant shareholder value through enhanced oil and gas recovery opportunities. In keeping with this strategy, Avalon entered into an Exclusive License Agreement last year with Oiltek, Inc. for Oiltek to market Avalon's portfolio of energy technologies. Oiltek acquires and develops energy recovery and production enhancing technologies for recovering oil from marginally producing oil wells. Kent A. Rodriguez, Avalon's CEO said, "With the rise in crude oil prices and capital availability, this market represents a significant opportunity to impact North American oil production."

The intellectual properties licensed by Oiltek include energy production enhancements for paraffin wax mitigation, intelligent drilling and completion for real-time reservoir monitoring and leak detection for hazardous gas pipelines. The addition of the BWPC technology is a valuable expansion of Oiltek's energy technology portfolio. Oiltek is an energy technology commercialization company and a majority-owned subsidiary of Avalon Oil & Gas, Inc.

On December 7, 2007, Avalon announced the filing of a Form S-1 Registration Statement with the Securities and Exchange Commission (SEC) for its majority-owned subsidiary, Oiltek Inc., for the listing of its shares on the OTC Bulletin Board. Avalon responded to comments received from the SEC on November 23, 2007, and re-filed the Form S-1 on February 12, 2008.

Mr. Rodriguez added "We are looking forward to the date the Oiltek S-1 Registration is effective, and expect the Company's Board of Directors to fix a share dividend date for Avalon's shareholders very soon after the Registration Statement is effective. We anticipate each Avalon shareholder will receive approximately one quarter share of Oiltek, Inc., for every share of Avalon."

About Avalon Oil & Gas, Inc.

Avalon Oil & Gas, Inc. is an oil and gas company engaged in the acquisition of producing oil and gas properties. In addition, Avalon's technology group acquires and develops oil 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.