Avatar Energy Ltd.
TSX VENTURE : AVG

April 19, 2011 16:35 ET

Avatar Doubles Its Land Position in Pembina and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - April 19, 2011) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG) is pleased to provide shareholders with an operational update on recent drilling activity and land acquisitions in the Pembina area.

Avatar has recently completed its second horizontal well for the first quarter of 2011, the first to be located on its East Pembina Cardium lands (65% WI net to the Corporation). The well has 1,220m of horizontal section and was stimulated with a 15 stage oil-based fracture treatment. The well was placed on production March 28, 2011 with initial production rates of approximately 1m3/hour (150 bbls/day). The well has since stabilized at approximately 60 bbls/day. Management is using these encouraging results to further enhance the company's drilling program with respect to well design and completion procedures.

In addition to this drilling success, Avatar has acquired an additional 4.0 sections of contiguous land offsetting the Corporation's recent drilling activity. Avatar's working interest in this additional acreage is 100% bringing its total land holdings in the East Pembina area to 8.5 gross sections (6.39 net sections).

The addition of the new land position provides Avatar with an increase of 10 additional horizontal drilling locations. Avatar currently has 25 proposed horizontal drilling locations in its total portfolio located on its operated land in the East Pembina area.

FORWARD LOOKING STATEMENTS

This press release contains forward looking statements. More particularly, this press release contains statements concerning future drilling plans, proposed acquisition strategies, use of available funds and the likelihood of successful future results. Although the Corporation believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The risks to which the Corporation is subject include, but are not limited to, operational risks inherent in the exploration, development and production of oil and gas; availability of financing; general economic conditions and changes in the capital markets; volatility of oil and gas prices; competition; and changes in legislation and the regulatory environment. The forward looking statements contained in this press release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Avatar Energy Ltd.
    Mr. Alan D. Jack, P. Eng
    President & Chief Executive Officer
    (403) 517-8818

    Avatar Energy Ltd.
    Ms. Lorie J. Hynes, CA
    Chief Financial Officer
    (403) 517-8818