2009-01-28-2008-07-03-2008-12-22

Purchased assets in East Chandler Field, Lincoln Co., OK.

Avalon Oil & Gas Inc., Minneapolis, (OTCBB: AOGN) has acquired all the oil and gas producing assets in East Chandler Field in Oklahoma held by Bedford Energy Inc., Oklahoma City, (Pink Sheets: BFDE) for $810,000 in shares, $300,000 in a secured note, $220,000 in assumed debt and an undisclosed amount in cash in a total disclosed value of $1.3 million. The assets are in Lincoln County. Avalon has increased its current interest in Grace #2 well from 2.5% to 7.5% and is acquiring a 10% working interest (13.825% net revenue interest) in Grace #1, Grace #3, Grace #5A and Grace #6 wells. Avalon also acquired a 50% interest in 540 acres adjoining the 320-acre East Chandler Field. Production from Grace #2 as of June was 350,000 cubic feet of gas per day. Total reserves are 90,000 barrels of oil and 559 million cubic feet of gas. Avalon chief executive Kent Rodriguez says, "This acquisition will increase our revenues nearly three-fold." Avalon now has 49 producing oil and gas wells in five states.