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Press ReleaseThe Next Potential Trillion Cubic Feet Major League Player in Natural Gas, in the U.S. Rockies ... AvalonBELLINGHAM, Wash., Jan. 5, 2005 -- Avalon Gold Corp. (OTC Bulletin Board: AVGC) owns an undivided 85% working interest in the 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 trillion cubic feet recoverable gas and is over-pressured by a 0.55 - 0.85 gradient.According to available data in the area, the prospect property has been delineated using several hundred miles of seismic data. The seismic data confirms the thick Emery pay section and shows several sediment wedges in the prospect area. "We feel the data supports a basin wide deep gas accumulation covering the entire field," states Carlton Parfitt, President of Avalon Gold. This giant gas lease borders other leases owned by EOG Resources Inc., EnCana Corp., and Bill Barrett Corporation, nearby. Major energy companies today recognize that tight gas reservoirs, where geological formations make production complex, and coal-bed methane, where gas is extracted from coal deposits, are two of the more important near term sources to boost North American production of natural gas as demand outstrips supply and drives up prices. The U.S. Geological Survey estimated (in 1995) basin-center and deep-basin gas resources in the Rocky Mountain Laramide basins to be 250 TCF. The Drunkards Wash Field, just south of the prospect area, is estimated to be between 2-4 TCF of recoverable gas. The Jonah Field Overpressured Gas Plain, which is analogous to our prospect area, has similar over-pressuring, depth, reservoir rocks and is estimated to be 2.5+ TCF. Several similarities exist between the Elmworth field in Alberta, Canada (one of the most prolific gas fields in North America) and the Company's Uinta Basin Over-pressured Gas Prospect. In addition, Avalon Gold Corporation has a 0.70% (0.70 of 1%) proportionate, reducible, Gross Overriding Royalty interest in the LAK Ranch Oil Project located in Newcastle, Wyoming. This royalty interest equates to $0.28 per barrel based on a price of $40.00 per barrel for Avalon. Contact: C. Wilson for Avalon Gold Corp. 561-367-8545 |
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