Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/crown-to-acquire-oil-and-gas-assets-in-russia.shtmlCrown to acquire oil and gas assets in Russia
Crown Oil and Gas Inc. has signed a letter of intent with Langford Worldwide Corp., whereby Crown plans to purchase all of the issued and outstanding shares in the capital of Covenlina Holdings Ltd.
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Crown Oil and Gas Inc. has signed a letter of intent with Langford Worldwide Corp., whereby Crown plans to purchase all of the issued and outstanding shares in the capital of Covenlina Holdings Ltd. (Covenlina) and Bandberg Holdings Ltd. (Bandberg) for a purchase price of $11,900,000.
The purchase price is payable $6,900,000 in cash and the remainder by the issuance of common shares of Crown at a deemed price of $1.00 per share. The transaction is expected to close on or before June 30, 2008.
Covenlina and Bandberg hold, through their subsidiaries, 25 year exploration and development licenses for the Tereshkinsky and Kikinsko-Gusikhinsky properties. Covenlina and Bandberg now also hold a 25 year exploration and development license for the Krasnoarmeisky-2 property after exercising an outstanding option.
The properties are located in the Saratov region of Russia, one of the major oil and gas regions in the country with advanced infrastructure and more than 60 years history of production. Saratov lies in the European part of Russia close to the border with Kazakhstan, the largest oil producing country in Central Asia. The three properties combined total approximately 500,000 acres. Extensive seismic work and analysis is scheduled for 2008 followed by exploration drilling in 2009.
