QED Connect Inc. (OTCBB: QEDN) plans to buy Terra Resources and Kuma Oil from Magna Resources Corp. for an undisclosed amount.

Terra, through its subsidiary company NV Alliance, has oil and gas rights in the Republic of Kalmykia, a subject of the Russian Federation. Kuma Oil, a Russian company, owns oil and gas rights in the Russian territory of Perm Krai. The companies currently operate and own multiple wells and perform drilling, pumping, and transportation through the commercial distribution system. Terra and Kuma have combined proven oil reserves of 570 million barrels with an estimated value of approximately $2 billion. The companies also have future exploration rights in their respective territories.

Victor Prediger, chief executive of Magna Resources Corp., the holding company for Terra and Kuma Oil, stated, "We have been looking for a partner to help us obtain working capital and provide a presence in the US. QED Connect is well positioned to support our business plan and our goals to maximize the potential of Terra and Kuma Oil. We are very excited to be working with QED Connect to move these projects to the next level."

Tom Makmann, president and chief executive of QED Connect commented, "Terra and Kuma Oil offer QED Connect the opportunity to participate in the oil and gas industry. We have been working to expand into other industries and are excited about the opportunity these companies bring to QED Connect. A typical oil well in Kalmykia produces up to 1,000 barrels a day, which can have the potential of contributing greatly to QED Connect's financial performance."

The definitive agreements are expected to close within the next 75 days pending due diligence and approval of any regulatory agencies and each company's respective board of directors. QED Connect is considering becoming a "business development company" as defined under the Investment Company Act of 1940.