Uinta Basin Overpressured Gas Prospect

Avalon Energy Corporation has an undivided 85% working interest in a giant gas field lease in the prolific natural gas producing Uinta Basin, located in the US 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. Figure 5

Our property is located in the following areas of Wasatch County, Utah:

1) UTU-79756

Township 5 South, Range 10 West, USM
(Containing 7,526.20 acres)

2) UTU-80169
Township 5 South, Range 10 West, USM
(Containing 259.63 acres)

3) UTU-80171
Township 5 South, Range 10 West, USM
(Containing 5,403.33 acres)

The Company has spent a total of $970,279 in acquisition costs and $96,005 in development costs on the Uinta property to date. On January 4, 2007, the USDA Forest Service decided to allow Avalon Energy to conduct their first proposed seismic exploration project. Avalon’s project would consist of approximately 7 miles of 2D seismic exploration in the Strawberry Peak and Shotgun Draw area of the South Unit of the Ashley National Forest.  Due to seasonal access constraints, it is expected that the project would not begin until summer of 2007.  Recording sensors would be placed along the seismic lines every 22 feet, with surface cables connecting the sensors to a central recording station.  Recording sensors consist of a small microphone, attached to a metal stake.  Shot-holes would also be drilled along the seismic line, every 330 feet, to a depth of about 60 feet.  Drill holes would be loaded with a small explosive charge, backfilled with cuttings and swelling clays, and then shot to produce seismic energy.  Drilling of the shot holes would be conducted using small portable drilling rigs, transported from site to site by either buggy or helicopter.  Along existing roads, buggy drills would be used, whereas helicopter drills would be used on steep topography away from existing roads. Access to the seismic line off of existing roads would be by helicopter, by foot, or by ATV.  No new roads would be required, and no vegetation would need to be cleared or removed.  After completion, all recording sensors and surface cables would be removed.  The entire operation is expected to last about 10 days. The Company has accepted a bid from CGG Veritas to complete the first seismic line. In addition, the Company is starting to work on public scoping for the second proposed seismic line,with vibrator trucks. 

Read Report by Paul B Anderson, Conulting Geologist, PG