"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Wednesday, April 02, 2008

Israeli Onshore Oil License - Tomco buys into Heletz fields

TomCo Energy (reg Isle of Man) announced yesterday that TomCo and its wholly owned Israeli subsidiary, Luton-Kennedy Limited (LKL) completed the acquisition of interests in two onshore petroleum licenses in Israel from Avenue Group Inc (AVNU.OB), a New York based US listed Oil & Gas Company, and its wholly-owned subsidiary Avenue Energy Israel Limited (together referred to as AEI). The interests acquired are a 50% interest in the Heletz-Blur-Kokhav Licence and a 25% interest in the integral Iris License, which include the original Heletz-Blur-Kokhav oilfield (Heletz).

At completion TomCo paid a US$1 million fee to Avenue Group Inc. in respect of the transfer of the 50% and 25% interests in the Heletz oil fields from Avenue to TomCo.

Discovered in 1955, The Heletz-Kokhav oilfield license, covers 60,000 acres in south Israel near Ashkelon.There are 3 defined fields , Heletz, Brur and Kochav .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").

In a report last September by Avenue Group (OTCBB:AVNU.OB) 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 has been and reamins the most prolific oil field discovered onshore Israel.

Lapidoth Israel Oil Prospectors Corp. Ltd., act as a contractor for the State of Israel and they have been producing approximately 70 BOPD from 6 producing wells. It was this company who originally doscovered the oil. Lapidoth was Deborah's husband.

Avenue Energy Israel Ltd (AEI) a subsidiary of Avenue Group (Sales 2006 : US$61,368 ) was issued a License September 2007 in which AEI agreed to a 3 year work program of field studies, well workovers, initiating 3D seismic and the drilling of a new well - the license would be lost if they didn't but if successful could result in a 30 year lease.

There are 533 idle wells to workover and some "significant" infill drilling potential on the acreage which is spaced at 80 acres offering higher density-drilling opportunities.There are also posibilities of waterflooding to increase recoverable oil reserves.The Israeli Government estimates the original oil-in-place (OOIP) for the field to be 50.7 million bbls with 2 million bbls of primary recoverable oil remaining, and studies suggest over 5 million bbls of secondary recovery potential may exist 19.1 - 17.2 already recovered) . A number of undrilled, deeper exploration prospects on the licenses have estimated potential in excess of 100 million bbls. Wow
Levi Mochkin, chairman and CEO of Avenue Group, (his brother Mendel Mochkin is Vice President) said in September , "Being awarded the Heletz-Kokhav License represents a transformational event for Avenue. Heletz-Kokhav, with its ability to generate near term cash flow from its base production, coupled with attendant meaningful upside, represents an excellent opportunity for Avenue and its shareholders. We also are very enthusiastic about the opportunity to significantly increase production levels at Heletz-Kokhav, thereby underscoring the significant oil and gas potential in Israel."

Uri Bar Ner is a Director and was after a long diplomatic career , Ambassador of Israel to Turkey from 1998-2001. He has held senior diplomatic positions in the United States, Europe and Asia and is a former Deputy General Director of the Israel Ministry of Foreign Affairs. Ambassador Bar-Ner currently acts as Vice Chairman of the American-Israel Friendship League, an organization that arranges missions of US dignitaries to Israel. Ambassador Bar-Ner holds a masters degree in political science from Emory University in Atlanta, Georgia and a bachelors degree from Hebrew University in Jerusalem.

A Press report when he took up the Turkish Ambassadorship says inter alia May 9th 1998 "Responding to the questions of reporters Bar Ner said Turkish-Israeli defense cooperation has been improved in the recent 3 or 4 years "

The Company geologist is Vladimir Gerchkov. He graduated in 1980 from the Oil and Chemistry University of Baku, Azerbaijan with a M.Sc. in Geology, Oil and Gas Deposits Prospecting. Mr. Gerchikov has over 20 years experience in the International exploration for oil and gas prospects and production in Russia, Vietnam, Israel, Colombia, and the Caspian region. He has extensive experience in the Sakhalin Islands where he was part of a Russian-Japanese joint venture that discovered the large Chaivo-sea and Odoptu-sea offshore fields. He worked in Vietnam where he was chief geologist on the rig and drill ship which discovered the large White Tiger and Dragon fields.

Howard Crosby, TomCo's CEO, commented. "To have the potential for in excess of 100 million bbls at deeper levels is truly exciting and would, on its own, transform your company into a serious E&P player within the oil & gas sector.

Indeed it would. Tomco shares rose 0.23 p on the news a to 2.05 p a rise of 12.33%

Howard Crosby and John Ryan were directors of Cadence Resources which rose in value from under US$1 million in 2001, when the company adopted its oil and gas investment strategy, to over $450 million in June 2006 when Mr Crosby stepped down as director. Howard and John May, FD, are also directors of Platinum Diversified Mining Inc (now ICM) which acquired International Consolidated Minerals Inc for $240m and remains quoted on AIM.

Not one for the widders 'n' orfans.

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