Avalon Oil & Gas Completes Work-Over on Chance # - 2.

MINNEAPOLIS -- Avalon Oil & Gas, Inc., (OTCBB:AOGS) announced today, through its relationship with KROG Partners, LLC, a Henderson, Texas based operator, that Avalon and KROG have completed the workover the Chance #2 well. The workover was performed as planned and within budget, and has achieved successful results. Production from the Chance lease has increased approximately 2-3 BOPD as a result of the workover, with relatively low associated water production. The workover included setting a packer to isolate a potential casing leak, and setting a pump, rods, and a pumping unit in order to re-establish production from the previously shut-in well.

The Chance lease, which includes the Chance #1 and #2 wells, is producing from the Woodbine Interval, within an active waterflood area. Total production from the Chance lease is averaging 7-8 BOPD, and Avalon owns a 50% working interest in the leasehold.

Avalon's Chief Executive, Kent Rodriguez, commented, "We continue to make significant inroads in terms of increased production capacity on lease assets we believe to have low-risk and high production profiles and are continuing our efforts to locate and acquire new lease opportunities consistent with our growth-at-a-reasonable-price philosophy." He continued, "We believe that with enhancements, production profiles and capabilities on these properties can be ratcheted up dramatically, allowing this acquisition to effectively 'pay back' its principal purchase price within twelve months. We are currently evaluating other opportunities with similar return profiles and anticipate announcing more developments shortly.

About Avalon Oil & Gas, Inc.

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

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