2008-10-10-2008-09-30-2008-09-30

Bought 100% WI in 80-acre lease and 50% WI in 240-acre lease in KS.

Avalon Oil & Gas Inc., Minneapolis, (OTCBB: AOGN) has acquired an undivided 100% working interest (85% net revenue interest) in an 80-acre lease and a 50% working interest (40% net revenue interest) in a 240-acre lease in Kansas from an undisclosed seller for an undisclosed price. The Rice County leasehold has seven wellbores and a salt-water disposal well. The well produced 30 barrels of oil per day before being shut-in in 1991. Avalon is working with Geneseo, Kan.-based J.D. Production Co. to washdown and recomplete the seven wellbores.