Avalon Acquires Non-Operated Production Of Lake Washington Field

Minneapolis, MN - Avalon Oil & Gas, Inc. announced that it has closed a transaction acquiring non-operated production in the Lake Washington Field in Plaquemines Parish, Louisiana, located about 60 miles south of New Orleans. Lake Washington was discovered in the 1930's and is located around a shallow piercement salt feature. Since discovery, the field has produced approximately 350 million barrels of oil, putting it among the largest oil and gas fields in the United States.

This acquisition substantially increases Avalon's daily production of oil and gas. Avalon will hold approximately 0.7% working interest in 3 producing units that are currently making over 1000 barrels of oil per day. Also acquired are like interests in surface production facilities and two salt water injection wells.

"We continue to deliver on our strategy to add quality properties which offer significant upside to our portfolio," said President and Chief Executive Officer, Kent A. Rodriguez. "Avalon's team has broad experience developing properties in the Louisiana / East Texas / Southwest Arkansas region and has seized this opportunity to refine our asset base with high margin properties, while adding significant development drilling opportunities. This transaction is very well suited to our strategy," added Rodriguez.

Swift Energy Company, the operator of the acquired wells, has indicated that they are evaluating additional drilling opportunities in the field.

SOURCE: Avalon Oil & Gas, Inc.