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. through its subsidiary Avenue Energy, Inc. is engaged in the exploration and development of oil and gas reserves.
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