Avalon Oil & Gas, Inc310 Fourth Avenue South, Suite 7000 , Minneapolis, Minnesota, United States

Avalon Oil & Gas, Inc., is an independent domestic oil and natural gas producer. The Companys strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows and production by acquiring a portfolio of oil and gas leases to generate asset growth, and to deliver a sustainable rate of return for our shareholders.   The current market environment for crude oil and natural gas has created an opportunity for the United States to reduce its dependence on unstable foreign sources of energy. Avalon is currently evaluating producing leases in southern Kansas, Oklahoma, Texas and Louisiana.

Overview

The price of crude oil and natural gas is the engine that drives the energy industry. In the late 1990s, in the wake of the Asian economic downturn, oil prices sank to $10.00 per barrel. The slump drove many small independent oil and gas producers out of business and many of the large independent producers merged, resulting in a downturn of drilling activities. Oil service companies had fewer rigs to service, pipeline and storage companies had less oil and gas to transport and store, and refineries produced less gasoline and other petroleum products.  The global economy has rebounded in the new millennium. Demand for crude oil, natural gas and petroleum based products has soared in the United States, China and India. This increased demand for energy and the political turmoil in oil-producing regions has caused energy prices to soar and the industry has rebounded. The higher prices have reached most of the industry - producers, refiners, pipeline companies, equipment makers, oil field service providers, and gas station operators - which have all enjoyed new profits. Leading the charge are the worlds largest integrated oil companies: Exxon Mobil, BP and Royal/Dutch/Shell. But aggressive domestic independent production companies, such as Avalon Oil & Gas, are also well-positioned to take advantage of improving prices.   Avalon Oil & Gas, Inc. focused on acquiring mature, oil and gas wells in Kansas, Oklahoma, Texas and Louisiana.   The Department of Energys Office of Fossil Energy has reported there is the potential to meet the demand for an energy thirsty nation by recovering over 43 billion barrels of additional oil from currently stranded oil reserves and mature oil and gas wells in the United States. www.fossil.energy.gov   Developing these resources will provide significant revenues to state treasuries, provide thousands of additional domestic jobs, and improve the U.S. trade balance by reducing imports.

Technology

Avalons technology group acquires and develops oil production enhancing technologies from early stage licensing partners. Through its relationship with UTEK, Inc., Avalon is building an asset portfolio. Its business model is to evaluate the commercialization potential as to technology and market viability, and if merited, proceed to rapid prototype development and field test of licensed technologies.Through relationships with targeted marketing partners, system design considerations will be tailored for market acceptance and adoption.

Oil Market Opportunity

  Global market conditions present an attractive investment opportunity for proven technologies which will expand oil production efficiency in established fields. New supply solutions are not sufficient to offset declining production in the US. This has led to redevelopment of shut-in wells and prematurely abandoned wells by new market entrants such as Avalon Oil & Gas. Avalon has the advantage of preferential access to the companys field test beds for evaluating prototype technologies for oil production enhancement. In addition, Avalons industry relationships can be leveraged in developing marketing partnerships for strategic technology commercialization.

Strategic Alliance with UTEK, Inc. 

UTEK is a leading, market-driven technology transfer company that enables companies to rapidly acquire innovative technologies from universities and research laboratories worldwide. UTEK has operations in the United States, United Kingdom and Israel and trades on the American Stock Exchange (AMEX) in the US and on the LSE (AIM) in London under the ticker symbol "UTK". Through its strategic alliance with UTEK, the technology commercialization team at Avalon has access to early identification of promising oil production enhancement innovations, and the capability to finance their acquisition in exchange for equity. 

Technology Asset Portfolio 

Avalon is in the process of acquiring a portfolio of new technologies for the oil and gas industry which have been identified through its partner UTEK; and were developed at leading universities and research labs. The initial technology licensed by Avalon include Borehole Casing Technology , developed by the Lawrence Livermore National Laboratory