SOURCE: Avalon Energy Corporation

August 03, 2005 06:30 ET

Utah's Energy Boom Affirming for Avalon

BELLINGHAM, WA -- (MARKET WIRE) -- August 3, 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.

Robert Klein, President, states that according to a recent article in The Salt Lake Tribune, the resurgence of the Rocky Mountain natural gas rush spurred on by the price of energy and the Bush administration's directive to encourage exploration and development is viewed as positive by the management of Avalon.

"Anytime you have an energy boom, you're reaping the glory of good, high-paying jobs," said Bill Johnson, director of economic development for Uintah County. "Everybody is running to the bank with smiles on their faces."

Unlike better-developed fields in Wyoming and Colorado, it's still unknown just how much gas eventually will be recovered. However, it's certain to be more than what drillers found during the last boom, which extracted only about 3 percent of the known reserves, said Duane Zavadil, a spokesman for Denver-based gas exploration company Bill Barrett Corp. Armed with high-tech exploration techniques including seismic surveys, gamma-ray measurement and high-pressure hydraulics to fracture deep rock, energy exploration companies are fanning out across the basin, drilling 4,000 to 15,000 feet to get at so-called unconventional gas trapped in the wrinkles of the Earth.

A study completed last year by the Utah Energy Office estimated that a single gas well in Uintah or Duchesne County would create 13 new jobs and $309,300 in additional personal income. The state would net $55,300 in tax revenues, the counties $29,200.

According to the Department of Energy; Bill Barrett Corporation; the Independent Petroleum Association of Mountain States; Estimates for technically recoverable natural gas in the Rocky Mountains range from 226 to 383 trillion cubic feet. A single gas well will produce about 2 billion cubic feet of gas. An average household uses 125,000 cubic feet of natural gas per year, which means one well will supply 800 homes during its 20-year life span. In 2003, proven natural gas reserves in the Rocky Mountain states represented 27 percent of U.S. reserves, or 18 percent of the nation's supply. The Rockies' share of lower-48 production will near 40 percent by 2025. Currently, natural gas supplies about 20 percent of the nation's energy needs, but is the fastest-growing energy source. Demand is forecast to increase nearly 40 percent during the next 20 years, including a 50 percent uptick in demand for gas-fired electric power. Gas heats 61 percent of U.S. households, cools homes and provides fuel for cooking.

On behalf of the Company,
/s/Robert Klein
Robert Klein, President
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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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