Oil & Gas Independent Engages M&A Consultant for Russian Project

Arcland Energy Corp., a Utah-incorporated exploration and development company headquartered in Dallas, has entered into a consulting agreement for mergers and acquisition services with Digital Associates Capital Limited, a United Kingdom limited liability company engaged in investment banking services.  The agreement provides for Digital to render financing services for asset acquisitions in the oil and gas production and refinery industry in oil fields located in or related to the Russian Federation, including without limitation, securing and evaluating acquisition opportunities and financing options.  

The agreement has an initial term of 364 days from the effective date with automatic one year renewals provided neither party has provided written notice of termination not later than six months before the automatic renewal.  In connection with and at the Arcland's closing of an oil and natural gas transaction in or related to the Russian Federation, Arcland shall pay a fee to Digital equal to 3% of the total purchase price of the applicable oil and natural gas assets acquired by the company.  The agreement is dated March 30 and is Exhibit 10.1 to the Form 8-K filed on April 1 (SEC file no. 0-10315).

Arcland executed a Letter of Intent on March 7 with Switzerland's Linnem Development Corporation SA to acquire a 75 percent interest in a Russian oilfield.  Subject to a formal definitive agreement to be entered into within 90 days of the execution of the letter of intent, Arcland will acquire a 75% stake plus one share in the existing Kumskaya Neft project upon, among other things, completion of financing of at least $125,000,000 to develop and operate the oilfields.  Upon the prospective closing, the Kumskaya Neft project would become a wholly-owned subsidiary of the company.