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Tuesday, 07 October, 2008, 14:20 GMT | more prices >>

Avalon expands assets in East Chandler



By Upstream staff 

US-based Avalon Oil & Gas has signed a letter agreement to buy all of the oil and gas producing assets owned by Bedford Energy in the East Chandler field, Lincoln County, Oklahoma.

Avalon will increase its current interest in the Grace-2 well and buy working interests in four other producing wells in the East Chandler field, the Grace-1, Grace-3, Grace-5A and Grace-6 wells.

The company is increasing its working interest in the Grace-2 from 2.5% to 7.5% and will also be buying interests in four additional wells in the East Chandler field.

Avalon is buying a 10% working interest in the Grace-1, Grace-3, Grace-5A and Grace-6 wells.

The Grace-2 was completed in the Viola Limestone, and is currently producing 350 thousand cubic feet of gas per day.

The Grace-5A was completed in the Prue Sand with an initial potential of 50 barrels of oil per day and 300 mcfpd.

The Grace-5, the Grace-1, the Grace-3 and the Grace-6 wells will be completed in the Hunton Lime.

In this transaction, Avalon will buy total reserves of 90,000 barrels of oil and 559 mmcf of gas.

The Hunton Lime Reserves from the Grace-1, the Grace-3 and the Grace-6 wells are estimated to be 48,000 barrels of oil and 423 mmcf gas.

The Upper Red Fork Sand reserves for the Grace-5A are estimated to be 30 mmcf of gas.

The company’s growing energy portfolio now includes production assets of 49 producing oil and gas wells in 5 states, and is continuing to expand its capital deployment through acquisitions of high potential oil and gas producing properties in the region.


Thursday, 03 July, 2008, 16:08 GMT  | last updated: Thursday, 03 July, 2008, 16:08 GMT

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