QED Connect has signed letters of intent to acquire 100 percent of Terra Resources and Kuma Oil, both oil and gas companies, and Kyrgyz Alumina, an aluminum mining company.
Terra, through its subsidiary company NV Alliance, has oil and gas rights in the Republic of Kalmykia, a subject of the Russian Federation. Kuma Oil, a Russian company, owns oil and gas rights in the Russian territory of Perm Krai.
The companies currently operate and own multiple wells and perform drilling, pumping, and transportation through the commercial distribution system. Terra and Kuma have combined proven oil reserves of 570 million barrels with an estimated value of approximately $2 billion. The companies also have future exploration rights in their respective territories.
"We have been looking for a partner to help us obtain working capital and provide a presence in the US,” said Victor Prediger, CEO of Magna Resources Corp, the holding company for Terra and Kuma Oil. “QED Connect is well positioned to support our business plan and our goals to maximize the potential of Terra and Kuma Oil. We are very excited to be working with QED Connect to move these projects to the next level."
Kyrgyz Alumina owns mines containing the raw material necessary to produce alumina (aluminum oxide). "Aluminum represents the second most popular commodity in the world,” said CEO Michael Roth. “Companies with reserves are in a good position to capitalize on this growing demand. We have been seeking a partner to help obtain the necessary working capital to begin our mining operations and we believe that QED Connect can provide the resources required to support our operations."
Tom Makmann, President and CEO of QED Connect commented: "Terra and Kuma Oil offer QED Connect the opportunity to participate in the oil and gas industry. We have been working to expand into other industries and are excited about the opportunity these companies bring to QED Connect. A typical oil well in Kalmykia produces up to 1,000 barrels a day, which can have the potential of contributing greatly to QED Connect's financial performance."
Makmann added, "With aluminum reserves in limited supply, we are very enthusiastic about the potential that Kyrzgyz Alumina can bring to QED Connect, thus increasing shareholder value."
The definitive agreements are expected to close within the next 75 days pending due diligence and approval of any regulatory agencies and each company's respective board of directors.
