NEW YORK, March 3, 2009 (GLOBE NEWSWIRE) -- Avenue Group, Inc. (OTCBB:AVNU) ("Avenue") is pleased to announce that Avenue Energy Israel ("AEI") has entered into an agreement with Lapidoth-Heletz LP ("L-H") to pool their interests in the Heletz-Kokhav and Iris licenses covering the Heletz Field in southern Israel ("Heletz").
Under the agreement, AEI is to contribute its 100% interest in the Heletz-Kokhav license and its 50% interest in the Iris License and L-H is to contribute its 50% interest in the Iris License into a pooling arrangement whereby AEI will retain a 75% interest and L-H a 25% interest in the combined licenses.
Additional terms of the agreement call for:
-- AEI to act as operator.
-- AEI to cover 100% of the costs associated with the Government
Approved Work Program ("GAWP").
-- Following the completion of the GAWP, AEI is to carry L-H's portion
of costs up to $325,000.
-- AEI is to retain 100% of the production from the Heletz 1, Heletz
25, Heletz 37, Kokhav 24, Kokhav 27 and Kokhav 29 wells and L-H
retaining 100% of the production from the Heletz 40 well.
"The Pooling Agreement is a win-win situation for AEI and L-H because it affords us the ability to focus on the optimal technical approach for the exploitation and development of the Heletz field," said Levi Mochkin, CEO of Avenue.
TomCo Update:
On February 11, 2009, TomCo Energy announced that it has suspended its securities from trading on the AIM market pending clarification of its financial position. We are currently in discussions with TomCo management as to the application of the Heletz farmin agreement for 50% of AEI's interest in the Heletz and Iris licenses.
ABOUT AVENUE GROUP, INC.
Avenue Energy Israel ("AEI"), a subsidiary of Avenue Group, Inc. (OTCBB:AVNU), owns a 75% interest in the Heletz-Kokhav License and a 75% interest in the Iris License which together encompass the Heletz Oil Field. The Heletz Oil Field, Israel's only producing oil field, was discovered in 1955 and has produced over 17 million barrels of oil to date.
A 2008 reserve report prepared by TRACS International calculates the original oil-in-place for the Heletz field at 94.4 Million barrels of oil (P50), 1P (Proven) reserves and 1C (P90 Contingent) resource at 1.465 Million barrels of oil, 2P reserves (Proven plus Probable) and 2C resource at 4.494 Million barrels of oil and 3P reserves (Proved plus Probable plus Possible) and 3C resource at 10.438 Million barrels of oil.
Certain statements in this announcement including statements such as "believes," "anticipates," "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Avenue Group to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-KSB, for the year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the period ended September 30, 2008. Avenue Group, Inc. undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
For further information, please visit our website at www.avenuegroupinc.com.