RussOil Completes Definitive Purchase Agreement With Smolenergy

New York - RussOil Corp. announced recently that it has executed a definitive purchase agreement with OSJC Smolenergy, an oil and gas company with 100% of its assets located in Siberia, Russia.

Under the terms of the agreement, RussOil will acquire 100% of Smolenergy in consideration of 110,000,000 restricted shares of Russoil common stock. Upon completion of the transactions contemplated by the agreement, Smolenergy is to become a wholly-owned operating subsidiary of RussOil, with current management of Smolenergy continuing to run day-to-day operations of the company. The closing is subject to the delivery of audited financial statements of Smolenergy, legal requirements and other customary closing conditions.

According to Smolenergy, it has a license to the Gorstovoe oil deposit, located in the southeastern part of West Siberia. The deposit's license, 1315/TOM/11289NE, runs from August of 2002 to March of 2014. According to the license, the proven reserves are 66 million barrels and the estimated probable reserves are 154 million barrels. As per the unaudited financial statements supplied by Smolenergy, revenue to date is over US $40M. With only six bore holes drilled on the deposit, Smolenergy strongly believes additional resources will be added to Gorstovoe's total reserves as additional exploration is completed.

"We are very excited by the prospects of the combination between RussOil and Smolenergy. The planned combined firm is to have both the access to western capital markets necessary to fund the development of Smolenergy's oil and gas deposit while also having all the resources in place to successfully complete the project," states RussOil Corp. CEO Mr. Silvestre Hutchinson.

SOURCE: RussOil Corp.