Recon Technology Ltd. (Nasdaq: RCON), a leading Chinese non-state-owned oilfield services provider, has purchased 2,800,000 shares of Avalon Oil and Gas Inc. (OTCBB: AOGN). After this investment, Recon owns 32.22% of Avalon's outstanding shares.
Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under the ticker symbol AOGN. Avalon is building a portfolio of oil and gas producing properties to generate asset growth. The company uses efficient reservoir maintenance and innovative technology to generate stable cash flows by reworking previously producing wells. Its acquisition strategy is to seek low-risk, proven oil and gas reserves with short payback periods and the potential for expanded production.
"The funds from this investment will be used to complete the workover of wells on the Moody and West Lease, Duval County, Texas and to acquire additional oil and gas producing properties," said Recon CEO Yin Shenping. “Recon is eager to work with US oil and oilfield service companies to develop markets beyond China. This is our first investment in a US company, and it's a significant milestone in our international development."