Following a recently completed farm-out agreement with TomCo Energy Plc, a London-based AIM listed Oil & Gas Company, AEI retains a 50% interest in the Heletz-Kokhav Licence and a 25% interest in the Iris License (the “Licenses”), which encompass the original Heletz oilfield. As part of an initiative to quantify the potential for additional infill drilling and secondary production opportunities, as well as high-grade several high risk / high reward deeper exploration targets, AEI has initiated a comprehensive technical re-evaluation of the field and has already identified a number of specific well work-overs and in-fill drilling targets. We are working diligently to increase production by bringing more wells online and planning additional infill wells and work-overs, which in light of record oil prices, puts Avenue in a position to receive substantial cash flow going forward. Today, Atlas Energy operates over 375 vertical wells producing from conventional zones, as well as the Chattanooga Shale, and is the largest producer of oil and gas in the state. The Company has plans to drill and complete approximately 150 conventional wells by March 31, 2009 and plans a two rig horizontal shale program capable of drilling four wells per month. Teton and Unit have signed an exploration agreement whereby Unit will pay for certain specified well costs to drill two test wells on Teton’s approximate 23,000 gross acre leasehold in the Big Horn Basin of Wyoming in order to earn a 50 percent non-operated working interest in Teton’s acreage. read more

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