Avalon Acquires Leasehold in Jefferson and Stephens County, Oklahoma

Avalon Oil & Gas, Inc., (Avalon) (OTCBB: AOGN) announced it has signed a letter agreement to acquire a one hundred percent (100%) working interest, eighty-three percent (83%) net revenue interest in 1,500 net mineral acres in Jefferson and Stephens County, Oklahoma. The leasehold has 26 wellbores that were producing 69 barrels of oil per day (BOPD) when they were shut-in in 1986.

“We are excited to complete this acquisition and expect to commence a workover program on the wellbores within the next 45 days,” said Avalon’s CEO, Kent A. Rodriguez. “Avalon is negotiating with several strategic partners, including a Duncan, Oklahoma-based drilling contractor and a petroleum engineer from Norman, Oklahoma. We expect to complete our review of completion reports, production history, logs, and well bore schematics from the existing wellbores and surrounding wells, in the next 30 days,” added Rodriguez.

Avalon’s growing energy portfolio now includes production assets of 58 producing oil and gas wells in 5 states. The company continues to expand its capital deployment and plans to acquire additional oil and gas producing properties in the region.

About Avalon Oil & Gas, Inc.

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