AVG Avidian Gold Corp

Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG) is pleased
to provide shareholders with an operational update on its recent drilling
activities and successful well test results and information on the increase to
its bank facilities.


Avatar, along with its working interest partners, has completed its first
horizontal well on its Pembina Cardium farm-in lands (48% working interest). The
well was stimulated with an 11 stage oil fracture treatment over a 1,100 metre
horizontal section. The well was flow tested for nine days and recovered 100% of
the frac fluid. The final flow rate was 700 BOEPD. The well was placed on
production January 3, 2011 at 525 barrels of oil per day ("bopd") (252 bopd net)
and 1.24 million cubic feet per day ("mmcf/d") of gas (596 mcf/d net) for a
total of 732 BOEPD (350 BOEPD net).


Avatar has increased the maximum amount available under its credit facilities
with National Bank of Canada to $8 million (CDN). This will provide the
Corporation with flexibility for its continued drilling program in the Pembina
Cardium area, to acquire further lands in the area and to assist with future
acquisitions.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


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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