AVG Avidian Gold Corp

Avatar Energy Ltd. ("Avatar, "we", "us", "our" or the "Company") (TSX
VENTURE:AVG) is pleased to announce its first quarter 2012 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.


First Quarter 2012 Highlights



--  stable production averaging 63 barrels of oil equivalent per day 
--  reduction in general & administrative expenses by 40% over the same
    period in 2011



Update on Operations and Credit Facilities:

Avatar and its joint venture partner plan to drill a well on our core Pembina
acreage before August 1, 2012. The well is anticipated to 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 $2.7 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.


The Company has received its lenders' permission to draw $660,000 of its
acquisition/development loan to assist with the Company's portion of the
drilling costs on its next well.


The Company has repaid in full its $600,000 bridge demand loan through the
elimination of its outstanding letters of credit. The Company is currently in
violation of its working capital ratio covenant under its credit facilities
which is required to not be less than 1 to 1. Management feels this is a
temporary deficiency caused by its drilling activities and purchase of
additional lands in 2011, and expects to remedy this deficiency by reducing
expenditures and through increased revenue streams created from the development
of its purchased lands. The lenders have not indicated any course of action in
relation to this deficiency.


Avatar is an emerging junior oil and gas company with production in Alberta. The
Company'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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