AVG Avidian Gold Corp

Avatar Energy Ltd. ("Avatar") (TSX VENTURE:AVG) announces that it has closed the
sale of certain non-core assets in the Pembina area to an industry participant
for gross proceeds of $750,000, subject to post-closing adjustments. These
non-core assets are not relevant to our area of focus or our acreage position in
the Pembina Field. Proceeds from this transaction will be used to further reduce
our credit facility.


Key Transaction Metrics:



--  7 BOE/day of Avatar's Cardium light oil production 
--  1,848 net acres of land 
--  Approximately $107,000 per BOE/day 
--  7 % of Avatar's December 2011 production



Operations Update:

Avatar and its joint venture partner plan to drill a well on our core Pembina
acreage before August 1, 2012. The well will have a 1,200 metre horizontal leg
into the Cardium sand and the completion program contemplates a 15 stage slick
water fracture stimulation. The estimated cost to drill, complete, equip and
tie-in this well is $2.5 million.


Initial three month production from offset wells in the same area average 120 to
245 BOE per day. Upon successful completion of the first well, Avatar's
development program proposes four wells per section for a total of 16 gross
wells.


Avatar believes the disposition of these non-core assets and our upcoming
drilling program allow us to enhance our focus on increasing shareholder value.


BOEs

Reference to BOE means barrels of oil equivalent and is derived by converting
gas to oil in the ratio of six thousand cubic feet (mcf) of gas to one barrel
(bbl) of oil. BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner top and does not represent a value
equivalency at the wellhead. References to BOEPD means barrel of oil equivalent
per day.


FORWARD LOOKING STATEMENTS

This press release contains forward looking statements. More particularly, this
press release contains statements concerning future drilling plans, proposed
acquisition strategies, use of available funds and the likelihood of successful
future results. Although the Corporation believes that the expectations
reflected in these forward looking statements are reasonable, undue reliance
should not be placed on them because the Corporation can give no assurance that
they will prove to be correct. Since forward looking statements address future
events and conditions, by their very nature they involve inherent risks and
uncertainties. The risks to which the Corporation is subject include, but are
not limited to, operational risks inherent in the exploration, development and
production of oil and gas; availability of financing; general economic
conditions and changes in the capital markets; volatility of oil and gas prices;
competition; and changes in legislation and the regulatory environment. The
forward looking statements contained in this press release are made as of the
date hereof and the Corporation undertakes no obligations to update publicly or
revise any forward looking statements or information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws.

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