MANCHESTER, N.H., Feb. 12, 2013 /PRNewswire/ -- Management of QED Connect, Inc. (OTPInk: QEDN) today announced its business strategy for 2013, reiterating the Company's plans to move forward in the oil and gas sector in 2013.
During 2012, the Company announced the execution of several definitive purchase agreements and letters of intent to acquire resource companies based in the former Soviet Union. The Company believes that the exploitation of the reserves held by these companies will lead to income of over $500 million over the next few years provided that the Company is able to obtain the necessary financing.
In 2013, the Company's plans are as follows:
- Complete due diligence for the acquisition of AFON 2010. AFON 2010's leases have the potential to produce 119,000,000 barrels of oil, valued at $130 million. QED's financial projections show $45 million in revenue based on five wells and production of 500 barrels per day per well. Upon successful completion of the due diligence, we intend to close the acquisition per the purchase agreement signed in October 2012.
- Complete due diligence for Kuma Oil. Kuma owns oil and gas rights in the Russian territory of Perm Krai, where oil was first found in 1929. Perm Krai is one of the richest resource regions in Russia and has deposits of oil, gas, coal, mineral salts, gold, diamonds, bog iron ore, peat, limestone, precious and decorative stones, and construction materials. Kuma's proven and proven undeveloped reserves are valued at approximately $525 million. Upon successful completion of the due diligence, we intend to close the acquisition per the purchase agreement signed in January 2013.
- Sign a definitive agreement to purchase Terra Resources, which has oil and gas rights in the Republic of Kalmykia, a Russian territory. In August 2012, QED signed a non-binding letter of intent to acquire Terra Resources.
- Sign a definitive agreement to purchase Kyrgyz Alumina, a mining company in Kyrgyzstan, a former Soviet republic. As its name implies, Kyrgyz Alumina mines and produces alumina, the raw material used to produce aluminum. In August 2012, QED signed a non-binding letter of intent to acquire Kyrgyz Alumina.
In addition, the Company has several technology businesses that it is pursuing in 2013:
- Sofame Energy, Inc., a joint venture with Sofame Technologies, has sold the custom-designed "Hybrid Percomtherm®" boiler which recovers boiler flue gas heat from existing boilers and recycles the heat, thereby leading to overall energy efficiency. We hope to fund and finalize our joint venture with Sofame during the year.
- StockProfile.com, a customized platform showcasing emerging growth stocks to independent investors. In June 2011, QED Connect purchased 100% of the assets of StockProfile.com. QED hopes to convert StockProfile.com into a crowdfunding platform once the Financial Industry Regulatory Authority issues rules for licensing of these services.
- QED purchased a control block of the outstanding common stock of Yellow7, Inc. ("Yellow7") in December 2012. Yellow7 is an online marketing company that brings over thirteen years of innovation, technology, and creativity to the online industry, having developed memorable media and technologies for brand leaders such as DATCU Credit Union, MetlSpan, TIGI and more. Yellow7's multiple capabilities help its clients take full advantage of customized, and effective, online technologies. QED intends to use Yellow7's experience in online marketing to promote the business it is acquiring.