Avenue Group Exits Turkey; Turns Attention to Appalachian Basin
Avenue Group has decided to conclude its exploration activities in Southeast Turkey and has surrendered all of its interest in the Karakilise Licenses to the operator and has satisfied all of its outstanding obligations to the operator.
In 2002, Avenue entered into a joint exploration effort with the operator Aladdin Middle East Ltd.. Three exploratory wells were drilled with one, the Karakilise Nr 1 located in Diyarbakir, SE Turkey, resulting in an initial production rate of approximately 400 BOPD of good quality medium grade oil. In drilling an offset well, Karakilise Nr 2, Avenue and AME were joined by JKX Oil and Gas, an LSE listed British independent. After extensive testing, Karakilise Nr 2 was determined to be non commercial and was abandoned. Karakilise Nr 1 continues to produce at a rate of approximately 25 BOPD.
As per the terms of the farm-out agreement entered into by AME and Avenue with JKX Oil and Gas, Avenue retains its right to receive approximately $300,000 out of JKX's future production revenue from the Karakilise Licenses.
Levi Mochkin, CEO and Chairman of Avenue Group, Inc., commented, "While we appreciate the exciting exploration potential of Southeastern Turkey, after careful deliberation, the management of Avenue has concluded to refocus its Oil and Gas efforts to onshore US. We wish Aladdin Middle East Ltd. and JKX Oil and Gas the best of success in their ongoing exploration activities in Turkey."
Norman Singer, head of Avenue's E&P efforts, said, "We are very pleased with the opportunities presenting themselves in the US, most notably in the Appalachian Basin. We are presently preparing to commence a 10 well drilling program made up primarily of PUD locations in the Appalachian Basin and are evaluating several other exciting opportunities in the region."
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