TORONTO, ONTARIO--(Marketwire - July 3, 2012) - Nitinat Minerals Corporation (the "Corporation") (TSX VENTURE:NZZ) is pleased to announce that it has entered into a letter of intent (the "LOI") dated June 18, 2012 with Taman Petroleum Corporation ("Taman"), an arm's length party to the Corporation, to acquire all of the issued and outstanding securities in the capital of Taman. Pursuant to the terms of the LOI, Nitinat will acquire all of the issued and outstanding securities in the capital of Taman in exchange for the issuance of 10,000,000 common shares in the capital of the Corporation at a deemed price of $0.15 per share. The closing of the acquisition is subject to the Corporation completing its due diligence, the execution of a share exchange agreement and the receipt of all necessary approvals, including, but not limited to, the approval of the TSX Venture Exchange.
FOR THE PURPOSE OF PROVIDING INFORMATION RELATING TO THE TEMRYUK OIL & GAS EXPLORATION-EXPLOITATION LICENCE, THE CORPORATION IS RELYING ON HISTORICAL INFORMATION. ALL INFORMATION PERTAINING TO THE TEMRYUK OIL & GAS EXPLORATION-EXPLOITATION LICENCE WAS DERIVED FROM HISTORICAL GEOLOGICAL REPORTS AND HAVE NOT BEEN VERIFIED.
Taman, a private Alberta, Canada company, owns 8% of the South Temryuk Oil & Gas Exploration-Exploitation Licence located in the mature Azov-Kuban petroleum region of southwest Russia (the "Project"). Taman owns its interest in the Project through its 8% interest in Technoton LLC, a Russian private company, which owns 100% of the Project; covering an estimated 4,000 hectares. Taman, via its interest in Technoton, has a formal participation, option and purchase agreement to govern the option and rights to revenues from the production from the Project. Taman has a right to earn an additional 20% of the Project by purchasing an additional 20% equity interest in Technoton for an aggregate purchase price of $2 million or $1 million for each 10% allotment. To date, Taman has paid an aggregate of $250,000 to Technoton for the purchase of the first additional 10% equity interest in Technoton.
The Project is situated four kilometres south of the community of Temryuk (Krasnodar Krai Russia), located between the Black Sea and the Sea of Azov. The Azov-Kuban petroleum basin region is a mature oil and gas producing region with ready access to both pipelines and ocean tankers. The South Temryuk license is sandwiched between two mature producing oilfields, the Kurchanskoye and the Strelchanskoye; controlled by the major petroleum company Rosneft. Reports indicate that estimated historical production from Kurchanskoye is 80 million barrels (mmb) of oil and 170 billion cubic feet (bcf) of natural gas, while Strelchanskoye production estimates are 30 mmb oil and 30 bcf natural gas.
In March 2008, well 'ST-1' was drilled on the Project to a depth of 3,840 metres, targeting priority geophysical anomalies which are the projected equivalents to regional production horizons. The well confirmed the presence of the main Sarmat oil horizon and also discovered the deeper Chokrak gas condensate horizon. Both technical and financial difficulties were encountered shortly after the completion of the well. Poor operating and testing practises used on well ST-1 at the time resulted in an inconclusive production assessment. Therefore, proposed near term work would re-evaluate well ST-1 using modern equipment and methods to better assess the economic viability of the hole. Additionally, the Project has a number of other untested geological-geophysical targets which offer future exploration targets.
Azov-Kuban Petroleum Basin
The Azov-Kuban Petroleum Basin encompasses about 161,000 square kilometers northeast of the Black Sea, in both southeast Ukraine and southwest Russia. In June 2011, the U.S. Geological Survey, using a geology-based assessment methodology, estimated mean volumes of technically recoverable, conventional, undiscovered petroleum resources at 218 million barrels of crude oil, 4.1 trillion cubic feet of natural gas, and 94 million barrels of natural gas liquids for the Azov-Kuban Basin (USGS Fact Sheet 2011-3052). Note that this estimate is for the basin as a whole and does not address the economic recoverability of these estimated resources.
Appointment of New Director
The Corporation announces that Messier Marc Branson has resigned as a director of the Corporation and Mr. Vern Bock has been appointed to the board of directors. The Corporation would like to thank Mr. Branson for his service and wishes him success in his future endeavors.
Mr. Bock began his career in the 1970s as an accountant for the State of Nebraska Department of Revenue where he participated in implementing a new income and sales tax system for the State of Nebraska. During the next eight years he rose to head comptroller, managing the activities of over 300 professional and support staff in processing that state's tax revenues. He left that position to enter private business, opening a photo-film development business which in seven years he built into the largest independent Kodak dealership in the state. In the mid-1980s, he moved to California where, for the past 30 years, he has been successfully engaged in the real estate mortgage banking and finance. Currently, Mr. Bock is a Senior Loan Agent for Wells Fargo Private Mortgage Funding, which is now the largest real estate mortgage lending institution in the U.S. As a private direct lender, Mr. Bock is able to exercise wide personal discretion to fund real estate loans including, when deemed appropriate, loans not otherwise conforming to the more restricted general requirements of the lending industry.
This update contains "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward looking statements can be identified by the use of forward looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Nitinat is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward looking statements contained in this release. Nitinat cannot assure investors that actual results will be consistent with these forward looking statements and Nitinat assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.