Avalon Oil & Gas, Inc. Signs LOI to Purchase Oil Property.MINNEAPOLIS -- Avalon Oil & Gas, Inc., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AOGS AOGS Angle Opposite Greater Side (math theorem) ) announced today that it has signed a Letter of Intent to acquire a fifty percent (50%) working interest, in a 266.73-acre oil and gas lease in Starr County, Texas Starr County is a county located in the U.S. state of Texas. In 2000, its population was 53,597. Its county seat is Rio Grande City6. The county is named for James Harper Starr who served as Secretary of the Treasury of the Republic of Texas. , from Canyon Creek Oil and Gas, Inc. The 266.73 acre property has four shut-in oil and gas wells. The lease is located in the Boyle Field, an oil field that has produced over 1,259,000 barrels of oil. Avalon Oil & Gas conservatively estimates the remaining reserves total over 1,283,000 barrels of oil and 242,900 mcfg. Avalon and Canyon Creek will hire an engineering firm to oversee the implementation of a water flood project to recover the maximum amount of oil from the reservoir. Once the water flood procedure is fully operational, the Company projects monthly cash flow, assuming prices of $60.00/barrel of oil and $6.50/mcfg, at nearly $500,000, after deducting for lease royalties, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and taxes. The Company intends to drill and complete ten additional wells during the next twelve months to further develop the oil reserves. Oil production is projected to reach 1,000 barrels of oil per day when the lease is fully developed. Canyon Creek Oil and Gas, Inc., is a subsidiary of Universal Property Development and Acquisition Corporation (OTCBB:UPDA UPDA Urban Planning and Development Authority (Qatar) ). UPDA is a publicly funded oil & gas company that targets projects with high net revenue interests, where risk has been substantially reduced by meticulous technical evaluation and geophysics. Avalon Oil & Gas, Inc. is an oil and gas company engaged in the acquisition of oil and gas producing properties with multiple enhancement opportunities. Forward-looking statements in the release are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward- looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This is material information only and is not an offer or solicitation to buy or sell the securities. |
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