Source: Avenue Group
Avenue Group, Inc. entered into a Letter of Intent with an Israel based investment group to finance the redevelopment of the Heletz oil field.
Under the terms of the LOI, the Israel Group is to contribute up to $5 million towards the redevelopment 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.
Heletz Oil Field
Avenue Energy Israel, a subsidiary of Avenue Group, 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. The Heletz field is a complex of three fields, Heletz, Brur, Kokhav, is located nearly 55 kilometers south of Tel Aviv and 12 kilometers east of the Mediterranean coast line.
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.