RussOil Completes Definitive Purchase Agreement with Smolenergy
NEW YORK--(BUSINESS WIRE)--RussOil Corp. (OTCBB:RUSO) announced today that it has executed a
definitive purchase agreement with OSJC Smolenergy, an oil and gas
company with 100% of its assets located in Siberia, Russia.
Under the terms of the agreement, Russoil will acquire 100% of
Smolenergy in consideration of 110,000,000 restricted shares of Russoil
common stock. Upon completion of the transactions contemplated by the
agreement, Smolenergy is to become a wholly-owned operating subsidiary
of Russoil, with current management of Smolenergy continuing to run
day-to-day operations of the company. The closing is subject to the
delivery of audited financial statements of Smolenergy, legal
requirements and other customary closing conditions.
According to Smolenergy, it has a license to the Gorstovoe oil deposit,
located in the southeastern part of West Siberia. The deposits
license, 1315/TOM/11289NE, runs from August of 2002 to March of 2014.
According to the license, the proven reserves are 66 million barrels and
the estimated probable reserves are 154 million barrels. As per the
unaudited financial statements supplied by Smolenergy, revenue to date
is over US $40 million. With only six bore holes drilled on the deposit,
Smolenergy strongly believes additional resources will be added to
Gorstovoe's total reserves as additional exploration is completed.
We are very excited by the prospects of the
combination between Russoil and Smolenergy. The planned combined firm is
to have both the access to western capital markets necessary to fund the
development of Smolenergys oil and gas
deposit while also having all the resources in place to successfully
complete the project, states Russoil Corp.
CEO Mr. Silvestre Hutchinson.
About Russoil Corp.: Upon completion of the planned combination,
Russoil Corp. will become a 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 companys goal is to
provide Western investors with access to a portfolio of natural resource
licenses and operating companies. Additional information can be found at www.russoilcorp.com.
Safe Harbor Statement: A number of statements contained in this
press release are forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Act of 1995.
These forward-looking statements involve a number of risks and
uncertainties, including the successful consummation of the transaction
with Smolenergy, the successful completion and integration of
prospective acquisitions, competitive market conditions, and the ability
to secure sufficient sources of financing. The actual results Russoil
may achieve could differ materially from any forward-looking statements
due to such risks and uncertainties. Russoil encourages the public to
read the information provided here in conjunction with its most recent
filings which may be viewed at www.sec.gov.