Brother, I was in the same boat as you are right now. I'm sure you must have done your research and homework prior to the purchase. A simple rule of thumb here is that when you are opting for a BMW 7 Series (specially older than 12 years, and in this case its almost 18 years old), fuel average should be on the lower half of your wish list.
For a perfectly healthy and maintained petrol engine, the fuel average is not more than 7.0. So its your call. Personally, I'd suggest to look for another car.