Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG) announces
that it has been notified that the farmor (the "Farmor") of its Brazeau well is
enforcing a judgment to recover debts from Avatar in the amount of $654,191.04
as consented to by Avatar in accordance with a previously disclosed forbearance
agreement. Avatar does not have funds available to repay the debt. Discussions
with the Farmor and the Corporation's lender regarding repayment are ongoing.
Avatar's debt levels and other liabilities cast significant doubt as to the
Corporations' ability to continue as a going concern.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Avatar Energy Ltd.
Mr. Alan D. Jack, P. Eng
President & Chief Executive Officer
(403) 517-8818


Avatar Energy Ltd.
Ms. Lorie J. Hynes, CA
Chief Financial Officer
(403) 517-8818

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