SOURCE: Avalon Energy Corporation

June 28, 2005 06:30 ET

Rising Value of Central Utah Oil and Gas Leases Positive for Avalon

BELLINGHAM, WA -- (MARKET WIRE) -- June 28, 2005 -- Avalon Energy Corporation (OTC BB: AVLN) reports that further to its news release dated May 10, 2005, the Company is optimistic about the recent oil and gas government auction in Utah fueled by the recent spectacular oil discovery in Central Utah. Deemed the largest onshore find in at least 30 years, located in a region of complex geology long abandoned for exploration by major oil companies.

The discovery, located 130 miles south of Salt Lake City, was made by Wolverine Gas & Oil Corp., a privately held company located in Grand Rapids, Michigan. Wolverine's test well hit "pay" in late 2003 and by May 2004 it started producing from a single deposit estimated to contain 100-200 million barrels of oil. Wolverine and government geologists said the company is looking at a total of 25 deposits that could contain 1 billion barrels of oil.

As reported in The Associated Press, with the headline "Oil and Gas Auction Turns Into A Gusher," bidding by oil and gas players intensified at a government auction as a rich oil find in central Utah sent prices soaring over $1,000 an acre. The bidding was intense on large parcels pushing starting prices of $2 an acre to as much as $1,250 an acre.

In all, the Bureau of Land Management leased 137 parcels totaling 232,257 acres. A BLM fact sheet says rising oil and natural gas prices and promising discoveries have pushed Utah into a "leasing frenzy." The auction raised $13.4 million, half of which goes to Utah.

Although Avalon's main focus is natural gas, there are also known deposits of oil on the Uinta Basin Prospect which the Company intends to explore.

Avalon Energy has an undivided 85% working interest in the Shotgun Draw Prospect in the prolific natural gas producing Uinta Basin, located in the US Rockies, Utah. The lease comprises 13,189 acres with a potential 4 TCF recoverable gas and is overpressured by a 0.55 - 0.85 gradient.

According to available data in the area, the Shotgun Draw Prospect has been delineated using several hundred miles of seismic. The seismic data confirms the thick Emery pay section and shows several sediment wedges in the prospect area. The Shotgun Draw Prospect borders other leases owned by EOG Resources Inc. and EnCana Corporation. Bill Barrett Corporation is also nearby.

On behalf of the Company,

/s/Robert Klein
Robert Klein, President

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products an other risks detailed from time to time in Avalon's filings with the Securities & Exchange Commission.

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