LONDON, Jan. 25, 2011 (GLOBE NEWSWIRE) -- Terra Resources, PLC (the "Terra Resources" or the "Company") is a UK based company listed, on the Frankfurt Stock Exchange under the trading symbol "T31". Having brought on an experienced international management team, the Company acquired substantial oil and gas concessions in the North Caspian region, Republic of Kalmykia.
The Company recently concluded a friendly share exchange with Elbrus Energy Group, LTD, a private Irish oil and gas firm ("Elbrus"), which is licensed through its Russian subsidiaries to explore and develop approximately 85,000 acres in the Russia's Republic of Kalmykia (the "Concession"). The Concession contains 64 wells drilled during the Soviet Era, with oil or gas discovered in 62 of those wells. Subsalt exploration resulted in 7 wells drilled, showing potential for a "super giant" find. A 51-101 Competent Person's Report, evaluating the Concession, was prepared in August 2010 by Chapman Petroleum Engineering, Ltd., an independent Canadian petroleum engineering firm. On a "best case" reserve estimate, the Concession was valued at $7b to $11b, with an estimated $175m in development costs over the life of the reserve.
Terra Resources is issuing to the shareholders of Elbrus 150,000,000 new shares of its stock in exchange for 100% of the shares of Elbrus. The Company is capitalized at 500,000,000 shares with 300,000,000 issued and outstanding at closing of the share exchange with Elbrus. All of the Terra Resources shares will be subject to a one year voting trust agreement. Terra Resources has less than 1,000,000 shares in its float, with 50,000,000 shares dedicated to project financing. The balance of 100,000,000 shares is subject to one year lock-up agreements.
Plan of Development
Management's plan of development for 2011-2012 is budgeted at $50m. Phase #1 ($10m) is to rework existing shallow wells (5,000 ft.) on the "E" Concession to generate immediate cash flow. Phase #2 ($15m) is to re-enter existing deep subsalt wells (15,000 ft.) on the "Y" Concession, which have been categorized by Chapman Engineering as being of "super giant" potential. A budget of $25m is for retirement of debt on the assumption of the Kalmykia assets from Elbrus to be paid from cash flow and equity/debt financings.
The Company intends to outsource all drilling operations on a turnkey basis with a major international services firm. It is in the process of finalizing its master services agreement, which it plans to execute in Moscow by the end of 1Q 2011, with the first rework to commence immediately thereafter. "We are excited to move ahead with this dynamic world class oil and gas opportunity," points out Terra Resources', CEO/COO Leonid Fradkin.
THE INTERVIEW WILL BE AVAILABLE ON THE WWW.CEONEWS.TV WEBSITE 1/27/2011.
Management Team
Leonid A. Fradkin, Director and CEO/COO Mr. Fradkin is Canadian Petroleum professional (P. Geoph. with APEGGA, also member of AAPG) with 30 years of executive experience in several countries. He served in various technical and top‐management positions, both with Canadian independent and public companies and with Majors, like Total, Fina, Elf. He has deep professional experience conducting business in the Former Soviet Union, and Greater Caspian Region as a geoscientist, operator, principal, and lead executive (having supervised several assets transactions in Kazakhstan and Russia with a value over $1 bln, including those between local and Chinese companies). Mr. Fradkin earned his BS and MS degrees from University of Krasnodar, Russia, and University of Baku, Azerbaijan.
Charles G. Salisbury, Director and Secretary/Treasurer Mr. Salisbury is a finance and marketing executive, investor, author, and public speaker with over 40 years of leadership experience. He is the CEO of SC Marketing, Inc., a management advisory firm ("SCM"), he founded in 1995. In the finance industry, Mr. Salisbury was an investment banking and brokerage executive with Shearson Lehman /American Express, Prudential Securities, Smith Barney from 1974 through 1996, holding NASD Series 1, 7, 63, MSSR Principal #53, real estate, life, and health insurance licenses. Through SCM, in 1997, Mr. Salisbury founded the World Basketball Association, becoming its main investor and president. He was the only American to ever own a Russian Basketball team. Mr. Salisbury is the author of Star Spangled Speakers, The Incredible Investment Book, Goliath Was The Best Thing That Ever Happened to David, and Living a Balanced Life. He is the host of "The Incredible Investment Show" heard nationally in USA on www.KBRT740.com every Saturday at 10AM PST. He holds an MBA from Hamilton University Business School.
Yuri Vanetik , Director Mr. Vanetik is a private investor. Mr. Vanetik serves on numerous corporate and non-profit boards. In the past, Mr. Vanetik practiced corporate law with K&L Gates, and later was a founding partner of Iger, Koehler & Vanetik, LLP, a law firm specializing in corporate governance. Mr. Vanetik received his B.A. in Legal Studies in 1991 from UC Berkeley, graduating Summa Cum Laude and Phi Beta Kappa. He earned his J.D. in 1998 from UC Hastings, where he was the recipient of the coveted American Jurisprudence Award. Mr. Vanetik actively leads and supports philanthropic, civic, and political organizations. In 2008, Mr. Vanetik was named Claremont Institute's Lincoln Fellow. In 2006, Mr. Vanetik was appointed to the Homeland Security Council. In 2007, Mr. Vanetik became Trustee for the Kennedy Center National Symphony. In 2008, Governor Arnold Schwarzenegger appointed Mr. Vanetik to serve on the California Criminal Justice Council, and in 2010 Governor Schwarzenegger appointed Mr. Vanetik to the California Lottery Commission. Mr. Vanetik serves on the Board of Directors of the American Red Cross, Miracles For Kids, Center For Global Change, and Gen-Next. He also serves on the Advisory board of UC Irvine's Center for Unconventional Security Affairs.
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Forward Looking Statements
This press release contains forward-looking statements, which express the current beliefs and expectations of the management of TERRA RESOURCES, PLC. Such statements are based on current expectations and are subject to risks and uncertainties, many of which are beyond our control, and could cause future results, performance, and achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially depending on a number of factors, and we caution investors not to place undue reliance on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date on which they are made and TERRA RESOURCES, PLC undertakes no obligation to update these forward-looking statements, even if new information becomes available in the future.