Avalon Oil & Gas Inc. (OTCBB: AOGN) is currently negotiating a purchase agreement and sale agreement and a joint operating agreement for certain Fossiltek Inc. assets in western Oklahoma for an undisclosed price.

The deal involves the purchase of a non-operating working interests in five producing oil wells and 33 producing gas wells in the Anadarko Basin, for a combination of cash and newly issued common stock. The properties are in Roger Mills, Grady, Caddo, Custer, Blaine, and Beckman counties, and are currently producing six barrels of oil and 300,000 cubic feet of gas per day.

The deal is expected to close in the next 30 days.