RussOil Acquires Smolenergy of Russia
RussOil has completed the acquisition of OJSE Smolenergy, a Corporation formed under the laws of the Russian Federation. Russoil believes this to be an attractive investment in the Russian oil and gas industry. Under the terms of the agreements, Russoil acquired one hundred percent (100%) of Smolenergy in exchange for 110 million newly issued but restricted shares of RussOil. Smolenergy will become a wholly owned operating subsidiary of the company with current Smolenergy management continuing to run day-to-day operations. Russoil is currently quoted in the United States on the NASDAQ Bulletin Board under the symbol RUSO and on the Frankfurt Stock Exchange under the symbol DQA1.
On May 25, 2007, Smolenergy purchased 51% of the interests of Gorstovoye, a Russian Federation limited liability company. Gorstovoye invests in oil and gas assets and has obtained licenses from the Russian Ministry of Natural Resources for the Gorstovoye oil field. Gorstovoye also has the rights to use the subsurface resource area that includes the Gorst oil field. Both fields are situated in the Tomsk Region of Western Siberia.
The licenses entail the following:
- Exploration and mining operations of oil and gas in Gorstovoe oilfield. The license is valid until March 18, 2014.
- Well operations valid until January 31, 2008.
- Mining of soil valid until December 31, 2008.
According to Smolenergy, reserves of oil equivalents on all areas will be transformed into categories C1 and C2, and will total approximately 44 million barrels.
"We are very pleased to see this acquisition completed. With the asset base of Smolenergy and its subsidiary, we believe that Russoil is well positioned to grow and expand its operations," commented RussOil Director Silvestre Hutchinson. "We believe that Russoil is now equipped to build a management team and a strong resource business that will be attractive to Western investors."
Russoil Corp. is U.S.-based oil and gas company with 100% of its assets located in Siberia, Russia, its core concept is to produce oil, develop oil fields, and conduct oil exploration while pursuing a strategy of seeking investment and acquisition opportunities in Russia and Eastern Europe. The company's goal is to provide Western investors with access to a portfolio of natural resource licenses and operating companies.