CALGARY, ALBERTA--(Marketwire - Jan 31, 2013) - 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.
Mr. Alan D. Jack, P. Eng
President & Chief Executive Officer
Avatar Energy Ltd.
Ms. Lorie J. Hynes, CA
Chief Financial Officer