NEW YORK, June 30, 2010 (GLOBE NEWSWIRE) -- Avenue Group, Inc. (OTCBB:AVNU) ("Avenue"), is pleased to announce that Avenue Energy Israel ("AEI") has entered into a Letter of Intent ("LOI") with an Israel based investment group ("Israel Group"), to finance the development of the Heletz field.
Under the terms of the LOI, the Israel Group is to contribute up to $5 Million towards the development of the Heletz field and earn a 32.5% interest in the Heletz field.
The agreement is subject to closing conditions which include, concluding a definitive agreement, finalizing the Tomco agreement and the customary closing conditions.
ABOUT AVENUE GROUP, INC.
Avenue Energy Israel ("AEI"), a subsidiary of Avenue Group, Inc. (OTCBB:AVNU), owns a 75% interest in the Heletz-Kokhav License and a 75% interest in the Iris License which together encompass the Heletz Oil Field. The Heletz Oil Field, Israel's only producing oil field, was discovered in 1955 and has produced over 17 million barrels of oil to date.
A 2008 reserve report prepared by TRACS International calculates the original oil-in-place for the Heletz field at 94.4 Million barrels of oil (P50), 1P (Proven) reserves and 1C (P90 Contingent) resource at 1.465 Million barrels of oil, 2P reserves (Proven plus Probable) and 2C resource at 4.494 Million barrels of oil and 3P reserves (Proved plus Probable plus Possible) and 3C resource at 10.438 Million barrels of oil.
Certain statements in this announcement including statements such as "believes," "anticipates," "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Avenue Group to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-KSB, for the year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the period ended September 30, 2008. Avenue Group Inc. undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
For further information, please visit our website at www.avenuegroupinc.com