03.08.2009

The chairman and CEO of Avenue Group is Levi Mochkin. Avenue Group won a license to carry out exploration activity in the Heletz Kochav field which spans 230 thousand dunam from Tel Aviv in the North to the Gaza Strip in the South, which is the only significant onshore oil field in Israel. The 60,000 acre licenses which were awarded in September 2007 (75% to Avenue and 25% to Lapidoth) contains Kochav, Barur and Heletz oil fields from which 17.2 million barrels of oil have been produced to date of the estimated oil in place of 94.4 million bbl (P50).). The Iris license is 8,000 acres and was awarded in February 2008 (75% to Avenue and 25% to Lapidoth). Heletz was the first oil field discovered in the Eastern Mediterranean and remains Israel’s most significant oil producing field. It was first discovered in 1955. In between 1955 and 1962 drilling of development and step out wells was carried out in the Heletz area and wells in the Brur area. Between 1962 and 1968 drilling of development and step out wells in the Kokhav area following the oil discovery of Kokhav 1. Between 1969-1997 step out and field extension wells were carried out. All in all 88 wells were drilled during the lifetime of the lease over an area of 4,500 acres, 60 of which were deemed producing wells. The first well (Heletz 1) was drilled to a depth of 4800 feet (1515 Meters) and recognized as a producing well on 12 October 1955. Peak production occurred between 1959-1967 when daily production was between 2,500 and 4,000 barrels of oil per day (“BOPD”). Heletz is said to have produced 17.2 Million barrels of oil to date out of an estimated 19.1 Million barrels of primary recoverable reserves and an estimated oil in place of 94.4 mm bbl and remains the most prolific oil field discovered onshore Israel. 4 wells were shut-in in August 2006. The field was restarted in June 2008.

Aerosols are tiny particles suspended in the air. Some occur naturally, originating from volcanoes, dust storms, forest and grassland fires, living vegetation, and sea spray. Human activities, such as the burning of fossil fuels and the alteration of natural surface cover, also generate aerosols. Averaged over the globe, aerosols made by human activities currently account for about 10 percent of the total amount of aerosols in our atmosphere. Aerosols tend to cause cooling of the Earth’s surface immediately below them. Because most aerosols reflect sunlight back into space, they have a “direct” cooling effect by reducing the amount of solar radiation that reaches the surface. The magnitude of this cooling effect depends on the size and composition of the aerosol particles, as well as the reflective properties of the underlying surface. It is thought that aerosol cooling may partially offset expected global warming that is attributed to increases in the amount of carbon dioxide from human activity. Aerosols are also believed to have an “indirect” effect on climate by changing properties of clouds. Indeed, if there were no aerosols in the atmosphere, there would be no clouds. It is very difficult to form clouds without small aerosol particles acting as “seeds” to start the formation of cloud droplets. As aerosol concentration increases within a cloud, the water in the cloud gets spread over many more particles, each of which is correspondingly smaller. Smaller particles fall more slowly in the atmosphere and decrease the amount of rainfall. In this way, changing aerosols in the atmosphere can change the frequency of cloud occurrence, cloud thickness, and rainfall amounts

Compressed natural gas (1500 to 2500 psi and 0 to – 40 F). There are 2 technologies for CNG transport: (a) The Cran & Stennings approach; (b) The Enersea approach. CNG is best suitable for voyage distances of up to 2500 miles. Cost of CNG transport: $1.86-$2.43/Mscf (depending on pressure and temperature); Published Cost of LNG transport: $1.89/Mscf. As the distance decreases CNG becomes more attractive than LNG

A compact fluorescent light bulb (CFL) will save about $30 over its lifetime and pay for itself in about 6 months. It uses 75 percent less energy and lasts about 10 times longer than an incandescent bulb

The assumption that a recorded seismic trace was reflected by a point midway (horizontally) between the source and detector.

As water depth increases, the external pressure on subsea pipe increases. Subsea pipe for deepwater and ultra-deepwater applications must have a high circumferential compressive yield strength to avoid collapse