SEK Secova Metals Corp

Secova Metals Corp. (TSX VENTURE:SEK) - 



--  100% Equity purchase of Taman Petroleum Corporation 
--  Taman owns 8% of oil-gas exploration-exploitation licence, with right to
    earn up to 30% 
--  South Temryuk exploitation license within Azov-Kuban petroleum province
    SW Russia 



Secova Metals Corp. is pleased to announce that it has signed a Letter of Intent
("LOI") to acquire 100% of the outstanding shares of Taman Petroleum Corporation
("Taman"). Taman, a private Alberta Canada company, owns 8% of the South Temryuk
Oil & Gas Exploration-Exploitation Licence located in the mature Azov-Kuban
petroleum region of southwest Russia (the "Project"). Taman has a right to earn
an additional 22% of the Project by funding and completing additional
exploration or exploitation. 


The Project is situated four kilometres south of the community of Temryuk
(Krasnodar Krai Russia), located between the Black Sea and the Sea of Azov. The
Azov-Kuban petroleum basin region is a mature oil and gas producing region with
ready access to both pipelines and ocean tankers. The South Temryuk license is
sandwiched between two mature producing oilfields, the Kurchanskoye and the
Strelchanskoye; controlled by the major petroleum company Rosneft. Reports
indicate that estimated historical production from Kurchanskoye is 80 million
barrels (mmb) of oil and 170 billion cubic feet (bcf) of natural gas, while
Strelchanskoye production estimates are 30 mmb oil and 30 bcf natural gas. 


In March 2008, well 'ST-1' was drilled on the Project to a depth of 3,840
metres, targeting priority geophysical anomalies which are the projected
equivalents to regional production horizons. The well confirmed the presence of
the main Sarmat oil horizon and also discovered the deeper Chokrak gas
condensate horizon. Both technical and financial difficulties were encountered
shortly after the completion of the well. Poor operating and testing practises
used on well ST-1 at the time resulted in an inconclusive production assessment.
Therefore, proposed near term work would re-evaluate well ST-1 using modern
equipment and methods to better assess the economic viability of the hole.
Additionally, the Project has a number of other untested geological-geophysical
targets which offer future exploration targets. 


Terms of the LOI agreement allow Secova to acquire 100% of the issued and
outstanding shares of Taman in exchange for about 43,753,535 common shares of
Secova, on the basis of one Secova share for each 1.4286 Taman shares (0.7
Secova shares for each one Taman share) such that on transaction closing Taman
will be a wholly-owned subsidiary of Secova and Taman's shareholders will hold
Secova shares. Upon completion of the transaction, Secova will have
approximately 79.5 million issued and outstanding common shares. The newly
issued Secova shares will be subject to normal trading escrow restrictions. The
closing of the transaction is scheduled to be completed on or before June 30,
2012 and is subject to the usual conditions precedent in this type of
transaction, including entering into a definitive business combination
agreement, receipt of Taman shareholder and regulatory approvals and the
completion of due diligence by both companies by March 31, 2012. A finder's fee
may be payable in connection with the transaction. 


Taman currently owns an 8% interest in Technoton LLC, a Russian private company,
which owns 100% of the Project; covering an estimated 4,000 hectares. Taman, via
its interest in Technoton, has a formal participation, option and purchase
agreement to govern the option and rights to revenues from the production from
the Project. Taman has the right to acquire an additional 22% of Technoton by
funding and completing additional exploration or exploitation.


Azov-Kuban Petroleum Basin 

The Azov-Kuban Petroleum Basin encompasses about 161,000 square kilometers
northeast of the Black Sea, in both southeast Ukraine and southwest Russia. In
June 2011, the U.S. Geological Survey, using a geology-based assessment
methodology, estimated mean volumes of technically recoverable, conventional,
undiscovered petroleum resources at 218 million barrels of crude oil, 4.1
trillion cubic feet of natural gas, and 94 million barrels of natural gas
liquids for the Azov-Kuban Basin (USGS Fact Sheet 2011-3052). Note that this
estimate is for the basin as a whole and does not address the economic
recoverability of these estimated resources. 


Company Management

Secova is pleased to announce the following changes to the company management,
effective February 13, 2012. Mr. Jason Scharfe is appointed to the board of
Directors and has resigned as the company's VP of Marketing. Mr. Bryan
Slusarchuk has resigned as a Director. The Company would like to thank Mr.
Slusarchuk for his service on the Board of Secova.


Mr. Michael Moore has resigned as President & CEO and is replaced by Mr. Robert
Maddigan. Mr. Moore has been appointed the company's Chief Operating Officer
(COO). Additionally, Secova is pleased to announce the appointment of Ms. Yana
Bobrovskaya to the board of Directors. Both Mr. Maddigan and Ms. Bobrovskaya
have extensive intra Russian-Canadian business experience and are familiar with
the business practices, intercompany relationships and personal management that
comes with running successful operations in Russia. They have been an integral
part of Taman Petroleum since its inception and will be a valued asset to Secova
going forward. 


Michael Moore, PGeo, is the qualified person who has reviewed the technical
information contained in this news release on behalf of the company.


Further information is available on the company's website www.SecovaMetals.ca.

ON BEHALF OF THE BOARD

Michael Moore, COO

Forward-Looking Statements: This Secova Metals News Release may contain certain
"forward-looking" statements and information relating to Secova which are based
on the beliefs of Secova management, as well as assumptions made by and
information currently available to Secova management. Such statements reflect
the current risks, uncertainties and assumptions related to certain factors
including, without limitations, exploration and development risks, expenditure
and financing requirements, title matters, operating hazards, metal or petroleum
prices, political and economic factors, competitive factors, general economic
conditions, relationships with vendors and strategic partners, governmental
regulation and supervision, seasonality, technological change, industry
practices, and one-time events. Should any one or more of these risks or
uncertainties materialize or change, or should any underlying assumptions prove
incorrect, actual results may vary materially from those described herein. There
is no assurance Secova's acquisition of Taman will complete on the terms
outlined, or at all.

Secova Metals (TSXV:SEK)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Secova Metals (TSXV:SEK)
Historical Stock Chart
Von Jun 2023 bis Jun 2024