Avalon Oil & Gas, Inc. announced today that on August 17, 2007 it entered into an Exclusive License Agreement with Oiltek, Inc. and also announced that it plans to spin-off the shares it owns in Oiltek to Avalon’s shareholders on a date to be determined by Avalon’s Board of Directors.
Oiltek is a majority owned subsidiary of Avalon which was incorporated in Delaware in November 2006 and focuses on oil and gas recovery technology. The technologies licensed to Oiltek involve innovative energy production enhancements. These include the patented technology developments to mitigate paraffin wax deposits in well bores and oil production tubing using ultrasonic waves.
The terms and conditions of the Exclusive License Agreement provide for Avalon to receive approximately eighty percent or 10 million shares of the Common Stock in Oiltek, in exchange for $50,000 and the rights to market Avalon’s portfolio of intellectual properties.