Avalon Acquires of Lake Washington Production

Business Wire, Nov 1, 2007

MINNEAPOLIS -- Avalon Oil & Gas, Inc., (OTCBB:AOGN)(FWB:A3MA.F) 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 (NYSE:SFY), the operator of the acquired wells, has indicated that they are evaluating additional drilling opportunities in the field.

About Avalon Oil & Gas, Inc.

Avalon Oil & Gas, Inc. is an oil and gas investment company engaged in the acquisition of oil and gas producing properties. In addition, Avalon's technology group acquires and develops oil production enhancing technologies. Avalon is building an asset portfolio of innovative technologies in the oil and gas industry to maximize enhancement opportunities through Oiltek, Inc., Avalon's majority-owned subsidiary.

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.avalonoilinc.com.