Avalon Oil & Gas, Inc., an independent domestic producer/investor of oil and natural gas, announced last month that it has received its first check for gas revenues from Scissortail Energy, an Oklahoma based provider of natural gas midstream services. The payment is for natural gas produced in the East Chandler Field in Lincoln County, Oklahoma, northeast of Oklahoma City, encompassing various wells in which Avalon holds partial interest. It represents the continuation of a climb in revenues for Avalon over the past year, with more expected.

Avalon is an investment company that acquires oil and gas producing properties. In addition, the company’s technology group acquires and develops various oil production technologies. Avalon, through its majority owned subsidiary Oiltek, is building an asset portfolio of innovative technologies to enhance the company’s oil and gas properties. The strategy is to use efficient reservoir maintenance and

Originally incorporated in the U.K. in 2003, Index Oil and Gas Inc. is an early stage oil and gas exploration and production company. Trading on the OTCBB, they have a current market capitalization of $34.32 million. The company has their head office in Houston, Texas, as well as an office in Bath, England. Their oil and gas prospects are in Texas, Louisiana, and Kansas.

In 2007, Index successfully focused on lower risk properties to build reserves and near term cash flow. For fiscal year 2008, Index focused on a balanced and risk-managed portfolio of prospects. The goal was to increase their reserves and production, and their efforts did pay off. Fiscal year 2008 saw the company’s revenue up 273 percent over the previous fiscal year. In addition, production was up 255 percent and reserves were up 100 percent in fiscal year 2008.

The company’s new stage of development is higher-impact wells comprising

We are reiterating our Buy rating on American Oil and Gas Inc. (AEZ) shares, but reducing our target price from $9.00 to $8.00 per share. The downward revision in our target price is due to updates in our commodity price deck, production and cost assumptions going forward. Although recent results were on the weaker side, our overall positive view of the AEZ story remains unchanged.

After booking reserves from the three Fetter Field wells it drilled in 2007 as a result of its partnership with Halliburton Co. (HAL) backed Red Technology Alliance (RTA), we feel that the Fetter Field’s risk profile has meaningfully improved. Even with our conservative risked reserve assumptions we feel that AEZ is undervalued at current levels. We see significant reserve and production growth going forward.

In the Fetter Project, production was adversely effected by maintenance and testing on a third party gas pipeline. The pipeline