Exhibit 99.1


Press Release                                     Source: Avalon Oil & Gas, Inc.

Avalon Oil & Gas Acquires Working Interest In Upshur County, Texas
Monday January 8, 3:50 pm ET

MINNEAPOLIS--(BUSINESS WIRE)--Avalon Oil & Gas, Inc., (OTCBB:AOGS - News)
announced today, through its relationship with KROG Partners, LLC ("KROG") , a
Henderson, Texas based operator, that Avalon, KROG, and Avalon's advisor,
William Anderson DBA Anderson Oil & Gas, Inc. ("Anderson"), have jointly
acquired a fifty percent (50%) working interest in an active Woodbine production
property consisting of 13 wellbores, which include six (6) producing oil wells,
three (3) salt water disposal wells, three (3) shut-in or marginally producing
wells, and one (1) well that has been plugged and abandoned since the effective
date, located in Upshur County, Texas. The working interest was purchased from
an Oklahoma City, Oklahoma, independent oil producer. Avalon owns an undivided
ten percent (10%) working interest in the properties, and KROG will be the
operator. The acquisition has been closed and is effective as of November 15th,
2006.

The wells being acquired were originally drilled in the 1960's by various
operators. These are mature wells with stable production, currently producing
approximately 25 BOPD from the Woodbine Interval. KROG, Anderson and Avalon will
immediately begin working on optimization/workover opportunities with the goal
of enhancing operations and production from the shut-in wellbores.

Avalon and KROG are continuing their focus on enhancing operating synergies in
the Southwest Arkansas, Northwest Louisiana and East Texas region through
acquisition of other mature production in the area. The area immediately
surrounding these new properties consists mainly of independent producers.

Avalon's Chief Executive, Kent Rodriguez, commented, "The acquisition of these
wellbores is part of our strategy of acquiring assets we believe to have
low-risk and high production profiles. We are continuing our efforts to locate
and acquire new lease opportunities consistent with our
growth-at-a-reasonable-price philosophy".

Glen Harrod, Vice President of KROG stated, "We feel there are opportunities to
enhance production through optimization of the existing producing wells, and
re-establishing production from the shut-in wells through repairs of the
submersible pumps and enhancement and expansion of the existing salt water
disposal system."

About Avalon Oil & Gas, Inc.

Avalon Oil & Gas, Inc. is an oil and gas company engaged in the acquisition of
oil and gas producing properties with multiple enhancement opportunities.



Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
of 1995. Those statements include statements regarding the intent, belief or
current expectations of Avalon Oil & Gas, Inc., and members of its management as
well as the assumptions on which such statements are based. Prospective
investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such
forward-looking statements. The Company undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions, the occurrence
of unanticipated events or changes to future operating results.

Contact:
Avalon Oil & Gas, Inc., Minneapolis
Kent Rodriguez, 952-746-9655
Fax: 952-746-5216
www.avalonoilinc.com
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Source: Avalon Oil & Gas, Inc.