Acquisition

TomCo Energy PLC
02 April 2008


                                TomCo Energy plc
                           ('TomCo' or 'the Company')
                                        
    Acquisition of Heletz-Blur-Kokhav and Iris Oil Field Licenses in Israel
                                        

TomCo (AIM:TOM) is pleased to announce that on 1 April 2008 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 'Acquisition'). The interests acquired are a 50% interest in the 
Heletz-Blur-Kokhav Licence and a 25% interest in the integral Iris License (the 
'Licenses'), which include the original Heletz-Blur-Kokhav oilfield ('Heletz'). 
The concessions, covering over 68,000 gross acres, were recently awarded to AEI 
by the Israel Petroleum Commission and are 3-year production and development 
licenses which can be extended to 30-year production leases upon a significant 
increase in the production from its current capability of 60 barrels of oil per 
day ('bopd').

The Heletz field, located 55km south of Tel Aviv and 12km east of the 
Mediterranean coast, is Israel's only onshore producing oil field. The field has
produced in excess of 17 million barrels of oil to date from Cretaceous sands, 
with peak production of 4,000 bopd in the mid 1960's. 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. A number of 
undrilled, deeper exploration prospects on the licenses have estimated potential
in excess of 100 million bbls.

AEI and LKL are commissioning an independent determination of the remaining 
reserves for the Heletz field as one of the first steps in an active technical 
programme designed to identify well re-completion and infill well drilling 
targets, and to examine secondary recovery options. Production from the field 
had declined to around 60 bpd by 2007, although TomCo expects that the 
implementation of modern production and recovery methods and selected infill 
drilling will significantly increase production over the next 24 months, 
resulting in the granting of a 30-year production lease.

The terms of the Acquisition are as follows:

1.  At completion TomCo paid a US$1 million fee to Avenue Group Inc. ('Avenue') 
    in respect of the transfer of the 50% and 25% interests in the Heletz oil 
    fields from Avenue to TomCo. Avenue and TomCo will now seek approval of this
    transfer to TomCo from the Israeli Authorities with a formula to provide 
    TomCo with the effective benefit of the transfer in the event that no such 
    approval is forthcoming;

2.  TomCo has issued to AEI 12,618,615 million ordinary shares of 0.5 pence each
    in the Company ('Ordinary Shares') valued at approximately US$500,000 at a 
    price of 2p per share with a one year sale restriction ('Consideration 
    Shares');

3.  TomCo has paid to AEI US$107,000 representing 50% of AEI costs incurred to 
    date in relation to the Licenses;

4.  Over the three year Phase 1 period of the Licenses, TomCo and LKL will pay 
    up to a maximum US$4.5 million of oil field development costs;

5.  TomCo and LKL will pay a further US$1.5 million fee to AEI at the time at 
    which a 30-year production lease is issued, which is expected to be at the 
    time production at the fields reaches 300 bopd; and

6.  TomCo and LKL will pay a further US$5 million fee to AEI in the event that 
    gross recoverable reserves on the Licenses are declared by a recognized 
    independent, qualified assessor to be more than 10 million barrels.

To finance the Acquisition, TomCo has recently placed, in aggregate, 80,399,999
shares ('Placing Shares') at a price of 1.5p per share raising a total of 
approximately £1.2m before expenses. Each two shares placed had an attached 
warrant to subscribe for one new Ordinary Share at a strike price of 2.5p per 
share with a 13 month term and a further Warrant to subscribe for one new 
Ordinary Share at a strike price of 5p exercisable within 13 months of the date 
of exercise of the first warrant. Application was made for 67,066,666 of the 
Placing Shares to be admitted to AIM, and trading in these shares commenced 27 
March 2008. Application has also been made for the remaining 13,333,333 Placing 
Shares to be admitted to AIM and trading in these shares is expected to commence
on 3 April 2008.

Additionally, at completion of the Acquisition the Company issued a 24 month 8% 
Convertible Loan Note to Trafalgar Capital Specialized Investment Fund 
('Trafalgar') for €1,000,000 with a minimum convertibility at 2p per share. The 
Company has also issued to Trafalgar 7,000,000 warrants with a three year term 
with an exercise price calculated by means of a formula based around 90% of the 
price at completion, and a fee of €25,000 which is satisfied by the issue of 
1,179,562 shares at a price of 1.66p per share ('Trafalgar Shares'). In addition
to the Consideration Shares and Trafalgar Shares, the Company has issued 400,001
new Ordinary Shares in relation to the above placing on identical terms to the 
aforementioned Placing Shares ('Fee Shares'). Accordingly, application has been 
made for the Consideration Shares, Trafalgar Shares and the Fee Shares 
representing, in aggregate 14,198,178 shares, to be admitted to AIM. Admission 
is expected to become effective and dealings in the Consideration Shares, 
Trafalgar Shares and Fee Shares to commence on 8 April 2008. Following the issue
of these shares the Company's issued share capital now consists of 538,049,151 
ordinary shares with voting rights.

Howard Crosby, TomCo's Chief Executive Officer, commented:

'We are extremely pleased to be able to join with the US public company, Avenue 
Group, to re-develop the highly potential Heletz-Blur-Kokhav and Iris oil fields
in Israel. 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.

Whilst we believe that this acquisition creates major new horizons for your 
company, we will continue to expand our portfolio, both in the USA and 
internationally, in order to build your company into an oil company with both 
significant production and an aggressive exploration programme.'

Web Site: www.tomcoenergy.com


Enquiries:

TomCo Energy Plc               [phone]
Howard Crosby

Strand Partners Ltd.           [phone]
Warren Pearce

Bankside Consultants Ltd.      [phone]
Simon Rothschild


Notes for Editors

TomCo Energy Plc is an AIM listed Oil company with conventional oil investments
in the USA and an estimated 230m bbls of oil equivalent in Utah oil shale
leases. The CEO, Howard Crosby is a successful serial oil and resources
entrepreneur.



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