ENCINO, Calif., Nov. 9, 2004 (PRIMEZONE) -- Avenue Group, Inc. (OTCBB:AVNU) (the "Company") and its wholly owned subsidiary, Avenue Energy, Inc. ("Avenue") announced today, that drilling operations are currently underway by Avenue's Joint Venture partner and drilling operator in Turkey, Aladdin Middle East Ltd ("Aladdin"), at Aladdin and Avenue's appraisal well, the Karakilise-2 well in the Diyarbakir Petroleum District of Southeast Turkey.
Aladdin advised Avenue that the Karakilise-2 well was spudded on November 3, 2004. Karakilise-2 is the second well in the license following the discovery well Karakilise-1 that went into production in September 2003. The Karakilise-1 well has produced approximately 30,000 barrels of 32 API gravity crude oil through the end of September 2004.
Aladdin plans to drill Karakilise-2 to a total depth of 8,220 feet (2.505 meters) and test the petroleum potential of the "Mardin Group," the same reservoir of Karakilise-1. A National 80-B drilling rig is being used and drilling is expected to take approximately 65 days.
Avenue has a 15% participation in the Karakilise-2 well and the other participants are Aladdin (80%) and Ersan Petrol Sanayii A.S. (5%).
The Karakilise Prospect is situated in the foreland immediately south of the thrust fault zone, which forms the northern edge of the Arabian Basin. The Karakilise License is 6 kilometers south of a producing oil trend of 18 fields discovered by Shell.
About Avenue Energy
Avenue Energy engages in oil and gas exploration and development. Together with the Sayer Group, it has a petroleum exploration and production acreage spread in Turkey, including a 15% participation interest in the Karakilise-1 well and license located in the Diyarbakir Petroleum District of southeast Turkey which has been producing high grade light crude oil since September, 2003. It also has a 50% participation interest in the North Rubai License, which is located close to the tri-nation boundary point of Turkey, Iraq and Syria and a 50% participation interest in the Gercus, Kilis and Arpatepe Licences in Turkey.
About Aladdin
Aladdin is a member of the Sayer group of companies ("the Sayer Group"). Over the past 20 years the Sayer Group has built up a well-established fully integrated oil and gas group based in Turkey, with offices in Ankara, Turkey and Wichita, Kansas, U.S.A. It has been engaged in exploration and production activities in Turkey since 1962. The Sayer Group owns and operates its own API rated drilling and workover rigs, seismic and oilfield equipment, cementing and fraccing units and a fleet of tanker trucks. AME is also a member of IADC (the International Association of Drilling Contractors).
For additional information about Avenue Group, Inc., please see our website at http://www.avenuegroupinc.com.
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Certain information contained in this Press Release are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December, 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution Investors and prospective Investors about significant factors which, among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Actual results may differ as a result of factors over which the Company has no control, including general economic and business conditions; effects of war or terrorists acts on the capital markets or the Company's activities, including oil and gas exploration and production, competition and ability to gain market acceptance of products; success of its operating and investment initiatives; including its investment in the Karakilise-2 well and other oil and gas exploration and drilling initiatives, operating costs; fluctuation in oil and gas prices, advertising and promotional efforts; the existence or absence of adverse publicity; changes in business strategy or development plans; the ability to retain management; its ability to obtain financing for its ongoing operations or proposed initiatives, including its participation in licenses and leases in Turkey; availability, terms and deployment of capital; availability of qualified personnel; labor and employment benefit costs; changes in, or failure to comply with, various government regulations; slower than anticipated completion of research and volatility in the trading price of its securities, and other risks listed from time to time in reports filed with the Securities and Exchange Commission, which factors are incorporated herein by reference. This news release is not an offer to sell or a solicitation of an offer to buy any securities of the Company. Any such solicitation or offer may only be made through a prospectus which has been approved by the Securities and Exchange Commission in the states in which such solicitation or offer has been approved.