Secova Metals Corp. signed a Letter of Intent to acquire 100% of the outstanding shares of Taman Petroleum Corporation, a private Alberta, Canada based company that owns 8% of the South Temryuk Oil & Gas Exploration-Exploitation Licence in the mature Azov-Kuban petroleum region of Russia. By funding and completing additional exploration and exploitation, Taman has a right to earn an additional 22% of the project.
The Project is located between the Black Sea and the Sea of Azov, south of Temryuk, Krasnodar Krai, Russia. The licence is situated between two mature producing oilfields, the Kurchanskoye and the Strelchanskoye in the Azov-Kuban petroleum basin region which has ready access to pipelines and oil tankers. Estimated historical production from Kurchanskoye is 80 million barrels of oil and 170 billion cubic feet of natural gas and Strelchankoye estimates are 30 million barrels of oil and 30 billion cubic feet of natural gas.
Terms of the Letter of Intent agreement will allow Secova to acquire 100% of the issued and outstanding Taman shares in exchange for 43,753,535 common shares of Secova on the basis of 0.7 Secova share for one Taman share. On transaction closing Taman will be a wholly-owned subsidiary of Secova and its shareholders will hold Secova shares. The closing of the transaction is planned for completion on or prior to June 30, 2012, subject to usual conditions.