Avenue Commissions Study on North Rubai Reefal Prospect

Avenue Energy has recently engaged Dr. John Scott, Managing Director of the independent consulting firm, PGA Consultants Pty. Ltd. to evaluate the North Rubai reefal prospect in SE Turkey in a group of leases where Avenue Energy currently holds a 50% participating interest.

Dr. Scott founded Petroleum Geological Analysis Ltd (PGAL) in Reading, England in 1979. This company has undertaken a large number of multi-client regional exploration evaluations. In addition to these reports available for purchase by the exploration industry, PGAL and Dr. Scott undertake confidential appraisals and projects for clients in both exploration and development geology. These consulting projects have been completed in numerous basins and areas in Europe (particularly onshore UK, onshore Western Europe and off-shore Norway), the Arctic, the Mediterranean, the United States, the Middle East, Africa, Southeast Asia and Australia.

Commenting on the report, Avenue's Director of Exploration, Dr. Jaap Poll said, "Avenue has a solid acreage position in some of the most productive basins in Turkey including the Turkish portion of the Arabian Basin. The Arabian Basin covers the main oil and gas producing areas of Yemen, Oman, the United Arab Emirates, Qatar, Bahrain, Saudi Arabia, Kuwait, Iran, Iraq and Syria, which together contain about 65% of the world's known oil reserves. In addition, Avenue also has the right until May 2006, to acquire up to a 50% interest in any future applications for oil and gas exploration licenses, which may be made by the Sayer Group in Turkey. It is an important step for Avenue to have this eminent independent geologist who is a expert on the petroleum geology of the region, evaluate this exciting prospect. The North Rubai prospect is located close to the tri-nation boundary point of Turkey, Iraq and Syria and is in a favorable geological setting and on trend with several giant oil structures in the region."

I. Technical Overview
Turkey straddles the oil-rich Middle East and the energy hungry European Union (EU). The South-East Turkey region forms the north flank of the Arabian Basin, and lies adjacent to the major oilfield belt of Iraq, Iran and Syria. Only approximately 1,400 exploration and appraisal wells have been drilled in the whole country since 1961. The Turkish portion of the Arabian Basin is less explored with fewer wells per acre drilled than in the rest of the Arabian Basin.