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http://www.avenuegroupinc.com/
Company Description
Avenue Group, Inc. (OTC BB:AVNU.OB - News) is engaged in the exploration and development of oil and gas reserves. Its strategy is to acquire a portfolio of oil and gas assets that include low risk oil and gas reserves internationally and the generation of low risk drilling opportunities in Appalachia and similar basins in the US.
Avenue Group, through is subsidiary Avenue Energy Israel LTD, is the license holder of the Heletz-Kokhav field, the most prolific oil field discovered in Israel. Heletz-Kokhav has produced in excess of 17.2 Million barrels. Avenue is also the General Partner of Avenue Appalachia 2006-LP engaged in an ongoing 10 well program in West Virginia.
Contact Information
Avenue Group, Inc.
405 Lexington Avenue
26th Floor
New York, NY 10174
United States
Levi Mochkin, CEO
Phone: 888-612-4188
Fax: 818-301-2708
IR@AVENUEGROUPINC.COM
Share Structure
Authorized Shares as of 3/31/2008 : 500,000,000 shares
Outstanding Shares as of 5/31/2008 : 256,990,986 shares
Tomco Energy
Stock Quote: http://www.advfn.com/lse/SharePrice.asp?shareprice=TOM
NEWS/FILINGS:
September 3, 2009 - TomCo Energy: Commencement of Arbitration Proceedings
May 21, 2009 - Quarterly Financials for period ending March 31, 2009
April 17, 2009 - TomCo Energy Announces Termination Of Agreement With Avenue Group Inc.
April 16, 2009 - Annual Financials for 2008
Tomco Agreement
On January 16, 2008, the Company entered into a Letter of Intent with TomCo Energy Plc (“TomCo.”).
In February, 2008 the Petroleum Commissioner of Israel issued the Company 50% of the Iris License covering the remaining part of the Heltz Field. Lapidoth-HEletz LP, a Limited Partnership listed on the Tel Aviv Stock Exchange, was issued the other 50% of the Iris License.
According to the terms of the Licenses, Avenue agreed to a work program over the next 3 years that will consist of field studies, well workovers, shooting seismic and the drilling of a new well. Failure by the Company in implementing the work program may cause the Company to lose its interest in the licenses. The Company may request the conversion of the License to a 30 year production Lease. In the event of a substantial increase in daily production that occurs as a result of the work program. The Company estimates the work program expenditures at approximately $4,500,000.
There are currently 53 idle wells which the Company believes can be excellent workover candidates.
On March 17, 2008, the Company borrowed $250,000 from TomCo. The loan is payable upon demand and accrued interest at a rate if 2% per annum.
Now, one year on from its formation, and the company has made its biggest investment to date, and its first venture overseas. TomCo has signed a letter of intent with New York-based Avenue Group Inc to acquire a 50 per cent interest in the Heletz-Kokhav licence, Israel’s only onshore producing field. The 50 million barrel oilfield, which lies 55 km south of Tel Aviv and 12 km from the coast, has produced more than 17 million barrels to date from Cretaceous sands. Production peaked at 3,000 to 4,200 bpd in the 1960s but is today running at around 60 bpd.
TomCo believes there is potential to significantly increase this number by drilling new wells and deploying modern recovery methods. The Israeli Government believes there are 2 million barrels of primary recoverable oil remaining, with the possibility for up to 10 million barrels using secondary recovery techniques. There are also a number of undrilled, deeper exploration prospects on the licence that could yield another 30 million barrels.
Heletz-Kokhav License
On September 25, 2007, Avenue Group, Inc. announced that the Petroleum Commissioner of Israel had issued a license for the Heletz-Kokhav Field to its wholly owned Israel subsidiary Avenue Energy Israel LTD. (“AEI”).
The Heletz-Kokhav license is comprised of 3 oil fields – Heletz, Brur and Kochav – equaling 229,600 dunam (approximately 60,000 acres), and is located approximately 55 km south of Tel Aviv and 12 km east of the Mediterranean Sea. Heletz was the first oil field discovered in the eastern Mediterranean and remains the most prolific oil field discovered onshore Israel.
The first well (Heletz 1) was drilled to a depth of 4800 feet (1515 Meters) and recognized as a producing well on 12 October 1955. Initial production was approximately 400 barrels per day; oil was 29 o API.
A total of 88 wells have been drilled on the Heletz field to depths ranging from 4,000 to 6,500 feet., of which 59 were producing wells with the other 29 having oil shows. Peak production reached 4,000 barrels of oil per day (“BOPD”) in the 1960’s.
Total reserves from the shallow sands have been estimated by Avenue’s geologists and by geological studies commissioned by the Israeli Government at 19.1 million barrels, of which 17.2 million barrels of oil has been recovered. Reserve estimates do not include secondary, tertiary recovery methods that may have the potential to raise production; these methods have not yet been applied to the field.
Oil production in the Heletz field continued until recently by Lapidoth Ltd., which acted as a contractor for the State of Israel. Recent production has been approximately 85 BOPD from 7 producing wells.
According to the terms of the License, AEI agreed to a work program over the next 3 years that will consist of field studies, well workovers, initiating 3D seismic and the drilling of a new well. Failure by AEI in implementing the work program may cause AEI to lose the license. AEI may request the conversion of the License to a 30 year production Lease. In the event of a substantial increase in daily production that occurs as a result of the work program.
There are 53 idle wells which AEI believes can be excellent workover candidates. There is significant infill drilling potential on the acreage as well. The field is currently developed on 80 acre spacing or greater, providing additional increased density drilling opportunity.
The Heletz sandstone together with production from an active waterdrive, makes Heletz-Kokhav an excellent candidate for a waterflood program, as other fields with similar characteristics have had success in increasing recoverable oil reserves through such processes.
