Sapulpa-based Avondale Resources Corporation announced today that it has entered into a preliminary loan agreement with Charles Volk, under which Volk will loan a total of $2 million to Avondale by November 15. Under the terms of the preliminary loan agreement, Volk may acquire a controlling equity position in Avondale.
Avondale will issue 50 million shares of its common stock to Volk to secure a one-year loan of $1 million by September 15, 2007. Avondale will borrow another $1 million for one year by November 15, 2007, which will be secured by another 50 million shares.
Volk intends to continue operating Avondale as an oil and gas exploration and production company and to register the company’s common stock with the SEC in order to list the stock for trading on a national market.
Avondale Resources Corporation is an oil and gas production company headquartered in Sapulpa. Formed in October of 2000 as Avondale Capital III Corporation, the company operated as a development stage company through May 2005.