Geotec/TelcoEnergy Completes Acquisition of Volgageoresource

Geotec Thermal Generators Inc./TelcoEnergy Corporation has exercised its option to acquire 51% of Volgageoresource, which was awarded five permits to explore 5 hydrocarbon structures in the Saratov Region (on 1,037,820 acres or 420 sq. km). Concurrent with the third party to the Agreement, the Institute of Geoinformational Analysis, indications of potential reserves are in excess of 100 million tons, or approximately 700 million barrels.

Mr. Roman Rozenberg, TelcoEnergy's Managing Director of Russian Operations, stated that, "the structures are located in the same geological basin as another US majority owned company called Stimul, which only has a small amount of oil and gas production, but as quoted by Business daily Vedomosti has 'significant reserves of around 100 million tones of hydrocarbons.' Stimul is owned by the U.S. Getty family and Russia's Gazprom. Saratov was one of the first prolific oil producing regions in Russia and therefore has an extensive oil infrastructure of pipelines, railways, and barging."

Vladimir Tichonovich Zukov, Academician and long standing member of the Russian Academy of Science stated, "the geological structures and formations of Volgageoresource properties hold a very large potential of recovery especially from the undeveloped deeper Devonian zone that was not produced by previous exploration conducted primarily in the Saratov region in the 30's."