Avatar Energy Ltd.

May 03, 2011 08:33 ET

Avatar Energy Ltd. Announces Year End Results

CALGARY, ALBERTA--(Marketwire - May 3, 2011) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE: AVG), is pleased to announce that we have filed with applicable Canadian securities regulatory authorities on SEDAR our audited financial statements and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2010, and the Corporation's Statement of Reserves Data and Other Oil and Gas Information (National Instrument Forms 51-101F1, 51-101F2 and 51-101F3). Selected financial and operational information is outlined below and should be read in conjunction with our audited financial statements and the related MD&A which are available for review at www.avatarenergy.ca or www.sedar.com.

The year ending December 31, 2010 was a year of repositioning the Corporation to prepare it for its new focus of exploiting its lands in the Pembina Cardium region of Alberta. The Corporation spent a good part of the year prospecting, planning and preparing for its drilling program in this area. The year culminated with the successful completion of its first Cardium horizontal well which resulted in doubling the Corporation's production. The Corporation forged ahead into the first quarter of 2011 with another successful Cardium horizontal well and looks forward to similar drilling success for the remainder of the year. Since year end the Avatar has also increased its prospective land holdings via an acquisition of acreage adjacent to its existing land position. The following highlights some of the more pertinent events from 2010:

  • completion of the Corporation's Initial Public Offering
  • completion of the Qualifying Transaction
  • completion of private placements totaling approximately $5.7 million
  • executing a bank financing agreement up to $8 million
  • successful horizontal oil well in the Pembina Brazeau area

Avatar is an emerging junior oil and gas company with production in Alberta. The Corporation's area of focus is on properties in the Pembina Cardium light oil resource play that exhibit long life high quality reserves with repeatable drilling upside.

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 x.225
    (403) 517-8815 (FAX)

    Avatar Energy Ltd.
    Lorie J Hynes, CA
    Chief Financial Officer
    (403) 517-8818 x.226
    (403) 517-8815 (FAX)