Avalon Oil Reports Increase in Grace #2 Well Production

Energy Resource, March 19, 2009

ENERGY RESOURCE-19 March 2009-Avalon Oil Reports Increase in Grace #2 Well Production(C)2009 JeraOne - http://www.jeraone.com

Avalon Oil & Gas today reported that gas production from the Grace #2 well in the East Chandler Field, Lincoln County, Oklahoma, has averaged 230 MCF per day for the past 30 days.

Avalon holds a 30.50% working interest and a 23.876875% net revenue interest in the Grace #2 and is continuing to acquire additional fractional working interests in the well.

"We have increased the choke on the Grace #2 and will begin producing the well at 400 MCF per day for the next few weeks, monitoring the downhole pressure in the well to determine if it is impacted by the increased flow rate," said Avalon CEO Kent A. Rodriguez.

"Other Red Fork wells in the area have not experienced a significant decline in downhole pressure with an increase in flow rates," Rodriguez added. "Even in the current price environment, production from the Grace #2 production will have a marked effect on Avalon's revenue stream."

For more information, visit www.avalonoil.com.

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