AVG Avidian Gold Corp

Avatar Energy Ltd. ("Avatar, "we", "us", "our" or the "Company") (TSX
VENTURE:AVG) is pleased to announce its third quarter 2011 financial results.
Copies of the financial statements and management discussion and analysis are
available for review at www.sedar.com and on our website at www.avatarenergy.ca.


Third Quarter 2011 Highlights



--  Production averaged 104 barrels of oil equivalent ("BOE") per day, a 40%
    increase over the same period in 2010. 
--  Revenue has increased by 120% compared to the same period in 2010. 
--  Operating and transportation costs have been reduced by approximately
    30% per boe from 2010. 
--  Increased our land position in the East Pembina area from 4.5 gross
    sections (2.38 net) to 8.75 gross sections (6.13 net) thereby increasing
    our Cardium focused drilling locations to 25 from 15.



Outlook

Since Avatar's inception in November of 2010, we have achieved significant
growth. Our focus on Cardium light oil drilling has resulted in a shift in our
commodity mix to be approximately 40% oil as compared to 15% oil in the previous
year. This resulted in a 56% increase in average selling price per boe compared
to the same period in 2010. We expect to drill another Cardium horizontal well
on our expanded land base scheduled for Q1 2012. We have significantly increased
our prospective land position in the Pembina area and have identified 10
additional drilling locations for a total of 25. With this sizable inventory of
horizontal oil locations on our Pembina acreage, we expect to provide successful
per share growth in cash flow, production and reserves from the capital program
we have laid out. 


Avatar is an emerging junior oil and gas company with production in Alberta. The
Corporation's area of focus is on properties in the Pembina Cardium light oil
play that have long life high quality reserves with repeatable drilling upside. 


Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this
press release contains statements concerning future drilling plans, proposed
acquisition strategies and the likelihood of successful future results. Although
the Company believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on them because
the Company 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
Company 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 Company 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.


Avatar converts certain natural gas volumes to BOEs on the basis of one barrel
to six thousand cubic feet and daily production is presented as barrels of BOE
per day. BOEs may be misleading, particularly if used in isolation. A conversion
ratio of one barrel of crude oil or natural gas liquids to six thousand cubic
feet of natural gas is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not necessarily represent value
equivalency at the wellhead.

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