Business
Acquisition
Acquisition.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n TomCo Energy PLC\n02 April 2008\n\n\n TomCo Energy plc\n ('TomCo' or 'the Company')\n \n Acquisition of Heletz-Blur-Kokhav and Iris Oil Field Licenses in Israel\n \n\nTomCo (AIM:TOM) is pleased to announce that on 1 April 2008 TomCo and its wholly\nowned Israeli subsidiary, Luton-Kennedy Limited ('LKL') completed the \nacquisition of interests in two onshore petroleum licenses in Israel from Avenue\nGroup Inc (AVNU.OB), a New York based US listed Oil & Gas Company, and its \nwholly-owned subsidiary Avenue Energy Israel Limited (together referred to as\n'AEI') (the 'Acquisition'). The interests acquired are a 50% interest in the \nHeletz-Blur-Kokhav Licence and a 25% interest in the integral Iris License (the \n'Licenses'), which include the original Heletz-Blur-Kokhav oilfield ('Heletz'). \nThe concessions, covering over 68,000 gross acres, were recently awarded to AEI \nby the Israel Petroleum Commission and are 3-year production and development \nlicenses which can be extended to 30-year production leases upon a significant \nincrease in the production from its current capability of 60 barrels of oil per \nday ('bopd').\n\nThe Heletz field, located 55km south of Tel Aviv and 12km east of the \nMediterranean coast, is Israel's only onshore producing oil field. The field has\nproduced in excess of 17 million barrels of oil to date from Cretaceous sands, \nwith peak production of 4,000 bopd in the mid 1960's. The Israeli Government \nestimates the original oil-in-place (OOIP) for the field to be 50.7 million bbls\nwith 2 million bbls of primary recoverable oil remaining, and studies suggest \nover 5 million bbls of secondary recovery potential may exist. A number of \nundrilled, deeper exploration prospects on the licenses have estimated potential\nin excess of 100 million bbls.\n\nAEI and LKL are commissioning an independent determination of the remaining \nreserves for the Heletz field as one of the first steps in an active technical \nprogramme designed to identify well re-completion and infill well drilling \ntargets, and to examine secondary recovery options. Production from the field \nhad declined to around 60 bpd by 2007, although TomCo expects that the \nimplementation of modern production and recovery methods and selected infill \ndrilling will significantly increase production over the next 24 months, \nresultin...