Avenue Energy to Pool Licenses Covering Heletz Oil Field in Israel

Avenue Energy Israel ("AEI") has entered into an agreement with Lapidoth-Heletz LP ("L-H") to pool their interests in the Heletz-Kokhav and Iris licenses covering the Heletz Field in southern Israel ("Heletz").

Under the agreement, AEI is to contribute its 100% interest in the Heletz-Kokhav license and its 50% interest in the Iris License and L-H is to contribute its 50% interest in the Iris License into a pooling arrangement whereby AEI will retain a 75% interest and L-H a 25% interest in the combined licenses.

Additional terms of the agreement call for:

  • -- AEI to act as operator.
  • -- AEI to cover 100% of the costs associated with the Government Approved Work Program ("GAWP").
  • -- Following the completion of the GAWP, AEI is to carry L-H's portion of costs up to $325,000.
  • -- AEI is to retain 100% of the production from the Heletz 1, Heletz 25, Heletz 37, Kokhav 24, Kokhav 27 and Kokhav 29 wells and L-H retaining 100% of the production from the Heletz 40 well.

"The Pooling Agreement is a win-win situation for AEI and L-H because it affords us the ability to focus on the optimal technical approach for the exploitation and development of the Heletz field," said Levi Mochkin, CEO of Avenue.

TomCo Update

On February 11, 2009, TomCo Energy announced that it has suspended its securities from trading on the AIM market pending clarification of its financial position. We are currently in discussions with TomCo management as to the application of the Heletz farm-in agreement for 50% of AEI's interest in the Heletz and Iris licenses.