Avalon Oil and Gas Inc. (OTCQB: AOGN) has formed Avalon 2015 -1 LP, a Delaware limited partnership with Drax Holdings NA, a Canadian corporation. Drax has invested $600,000 in the limited partnership, representing 100% of the invested capital.
The funds will be used to purchase non-operated oil and gas producing properties in Oklahoma and Texas. Initially, Drax will receive 98% of the revenues from the limited partnership and Avalon will receive 2% of the revenues. After Drax receives 100% of its investment from revenues from the sale of oil and gas, Avalon will increase its share of revenues from 2% to 30%.