SOURCE: Avalon Energy Corporation

July 06, 2005 06:30 ET

Importance of Overpressure in Making a Giant Gas Field

BELLINGHAM, WA -- (MARKET WIRE) -- July 6, 2005 -- Avalon Energy Corporation (OTC BB: AVLN) owns an undivided 85% working interest in a giant gas field lease in the prolific natural gas producing Uinta Basin, located in the U.S. 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.

The US Geological Survey and the oil and gas industry recognize that the sedimentary basins of the Rocky Mountains contain hundreds of trillions of cubic feet of recoverable gas (methane) from low permeability sandstone.

The Ferron and Emery formations were deposited as clastic wedges that pinch out across the basin into marine shale. These clastic wedges contain thick total coal (up to 250 feet) deposited in a stacked sequence adjacent to stacked shoreface sands. Deep burial of the coal beds resulted in the generation of large volumes of thermogenic gas. Overpressuring is also present east of the Shotgun Draw Prospect but without the good reservoir quality of our prospect.

Assuming total coal thickness of up to 250 feet, the Company expects 74.2 TCF of gas per township to have been generated within the deep basin-centered gas-prone wedge of sediments. Ten percent (10%) of this amount or 7.42 TCFG per township is deemed recoverable from the Emery-Starpoint and Ferron shore-face sandstones. With Avalon's 13,189 acre leasehold, 4.2 TCFG is recoverable assuming a 10% recovery factor. The assumption is that none of the gas generated in the area has escaped above the water-gas contact of the basin-centered accumulation, and that the Emery-Starpoint and Ferron sandstones are the major gas reservoirs.

Moreover, we have good evidence that the entire western portion of the Uinta Basin, which includes our Shotgun Draw prospect area, appears to be overpressured in spite of the fact that not a single well has been drilled deep enough to evaluate the Emery Formation. The single seismic line with recording parameters sufficient to define overpressuring indicates that not only is the Emery Formation overpressured, but that the potentially productive, shallower Castlegate, Blackhawk, and Starpoint zones may also be overpressured.

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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