05.07.2009

Avenue Group won a license to carry out exploration activity in the Haletz 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 contains Kochav, Barur and Haletz 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). Heletz-Kokhav License is 60,000 acres was awarded in September 2007 (75% to Avenue and 25% to Lapidtoh). The Iris license is 8,000 acres 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 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. All in all 88 wells were drilling 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.

Tankers with a deadweight of 38,000 to 49,999 tons and from 27,000 to 37,999 tons respectively. Along with other smaller tankers, these can carry clean or dirty cargoes depending on the vessel or trade route

Reservoirs with temperatures of 150 degrees C or more. Producing oil or gas from such fields means constantly pushing back the technological frontier. HPHT can also cause a hole to collapse and danger of a blowout. When oil is produced from very deep wells it comes out of the ground at a very high temperature cooling quickly on its way out and causing paraffin to form and clog the pipes. In addition, the oil is produced at extremely high pressure (about 230 times the pressure of air in a car’s tire)

The hole is advanced by turning sections of auger casing, called auger flights, into the subsurface. Rotating of the auger flights carries the soil to the surface. This method is most effective when used in stable soil conditions which are generally free from cobbles and boulders. The advantages of this method are that the hole is drilled and cased simultaneously, and the hole can be advanced without the introduction of fluids. Some of the disadvantages are that drilling difficulty significantly increases with depth and the auger flights must be removed from the hole without rotating to avoid damaging the installed instrument.

The branch of earth science which employs physical measurements and mathematical models to explore and analyze the structure and dynamics of the solid Earth and similar bodies and their fluid envelopes. Geophysicists use the principles of physics, mathematics and geology to study the surface and internal composition of the earth.

The Earth’s gravitational field, or the attractive force produced by the mass of the Earth. Variations in the gravitational field can be used to map changes in the density of formations in the Earth. Gravity surveys can be used to map the extent or depth of sedimentary basins or even individual hydrocarbon prospects

Geotechnical refers to the use of scientific methods and engineering principles to acquire, interpret, and apply knowledge of earth materials for solving engineering problems.

A geological feature produced by deformation of the Earth’s crust, such as a fold or a fault; a feature within a rock, such as a fracture or bedding surface or, more generally, the spatial arrangement of rocks.