SOURCE: Avenue Group, Inc.

June 20, 2008 08:46 ET

Avenue Restarts Production From Heletz Field

NEW YORK, NY--(Marketwire - June 20, 2008) - Avenue Group, Inc. (OTCBB: AVNU) ("AGI") and its wholly owned Israel subsidiary, Avenue Energy Israel LTD. ("AEI"), is pleased to announce that it has restarted oil production from the Heletz-Kokhav License, part of the Heletz Field in southern Israel ("Heletz").

Over the past 14 days, two existing wells (Heletz-1 and Heletz-25) have been re-opened for production, and are currently producing around 34 bopd ("Barrels of Oil Per Day") in aggregate (17 bopd net to AEI). Oil production is from Cretaceous sandstones of the Heletz Formation, at depths of 1496 to 1532 m. Water cuts are around 40%. Three further wells are currently being tested and prepared for production, and are expected to come on stream in the next few days.

The Heletz Field, with an Original Oil In Place (OOIP) of over 50 million bbl, was discovered in the 1950s and produced around 17 million barrels prior to production being shut-in in August 2007. Following a recently completed farm-out agreement with TomCo Energy Plc ("TomCo"), a London-based AIM listed Oil & Gas Company, AEI retains a 50% interest in the Heletz-Kokhav Licence and a 25% interest in the Iris License (the "Licenses"), which encompass the original Heletz oilfield.

As part of an initiative to quantify the potential for additional infill drilling and secondary production opportunities, as well as high-grade several high risk / high reward deeper exploration targets, AEI has initiated a comprehensive technical re-evaluation of the field and has already identified a number of specific well work-overs and in-fill drilling targets. AEI is also finalizing terms towards retaining a prominent reservoir engineering firm for a study of remaining reserves.

Levi Mochkin, AGI's Chief Executive Officer, commented:

"We are very pleased to have re-commenced production from Heletz. We are working diligently to increase production by bringing more wells online and planning additional infill wells and work-overs, which in light of record oil prices, puts Avenue in a position to receive substantial cash flow going forward."

Heletz Field Background

The Heletz-Kokhav license and the Iris license equaling approximately 68,000 acres, are comprised of 3 oil fields -- Heletz, Brur and Kochav -- 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 significant 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 29o 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 occurred between 1959-1967 when daily production was between 2,500 and 4,000 barrels of oil per day ("BOPD").

Total recoverable reserves have been estimated at 19.1 million barrels, of which 17.2 million barrels of oil has been recovered. Recovery 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. A number of significant undrilled, deeper exploration prospects on the licenses have also been identified.


Avenue Group, Inc. (OTCBB: AVNU) 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 the acquisition of low risk oil and gas reserves and the generation of low risk drilling opportunities.

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 March 31, 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 or contact Levi Mochkin at (888) 612-4188 ext 4 or email

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