SOURCE: Avenue Group, Inc.

October 25, 2006 16:00 ET

Avenue Group Announces Funding and Commencement of Its West Virginia Drilling Program

NEW YORK, NY -- (MARKET WIRE) -- October 25, 2006 -- Avenue Group, Inc. (OTCBB: AVNU) announced that it has formed Avenue Appalachia 2006 LP (2006 LP) to fund its obligations for its West Virginia Drilling program.

The general terms of the partnership call for Avenue Group's oil and gas subsidiary, Avenue Energy, to act as the general partner of the 2006 LP thereby receiving a 10% partnership share with its share rising to 20% post payout of capital invested.

The limited partners of the 2006 LP are expected to contribute $2.1 million for the drilling of 10 gross wells. Avenue has received a $1.5 million commitment from a private family trust and other contributions to complete the program are in the process of being finalized.

Commencement of Drilling:

On October 23rd 2006, the Operator, Drilling Appalachia Corporation (DAC), informed us that it has spudded the first well in the program. Drilling and completing this well is expected to take approximately 10 days.

About the Appalachian Basin

The Appalachian basin covers over 185,000 square miles across seven states (from Western New York through Georgia and Alabama) and is the US's oldest producing region with production in excess of 46 tcf of gas from over 400,000 wells. In 2003, the National Petroleum Council estimated the basin still contained another 9 tcf of proved gas reserves and an additional 68 tcf of unproved gas reserves.


Avenue Group, Inc. (OTCBB: AVNU) through its subsidiary Avenue Energy, Inc. is engaged in the exploration and development of oil and gas reserves.

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, 2005 and its Quarterly Report on Form 10-Q for the period ended June 30, 2006. 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 or contact Levi Mochkin at (888) 612-4188 ext 4 or Norman Singer ext 5

Contact Information

  • Contact:

    Levi Mochkin
    (888) 612-4188 ext 4

    Norman Singer
    (888) 612-4188 ext 5