Canadian Shells

[Tackler]

CKDh Covik hires Kappelle to negotiate oil and gas deal

2005-05-25 12:40 ET - News Release

Mr. Kaare Foy reports

COVIK SIGNS CONSULTING CONTRACT

Covik Development Corp. has entered into a contract for the provision of consulting services with Steven James Kappelle, under which Mr. Kappelle will negotiate on behalf of the company the acquisition of an oil and gas asset in Central Asia that meets the requirements of the TSX Venture Exchange for Tier 2 oil and gas issuers, on terms acceptable to the company. The contract expires Dec. 31, 2005.

As separately announced in Stockwatch, Mr. Kappelle has agreed to join the company's board of directors. He will be granted an option to purchase 450,000 shares at 12 cents per share with a further option to purchase 550,000 shares as soon as the company's capital structure so permits, this option being exercisable at the higher of 12 cents and the lowest price permitted by the policy of the TSX Venture Exchange at the time of grant.

For his consulting services, Mr. Kappelle will receive an initial payment of $15,000 (U.S.). From June 1, 2005, Mr. Kappelle will be paid $10,000 (U.S.) per month for a three-month period or until the company reactivates, whichever occurs first. On Aug. 31, 2005, or the reactivation and refinancing of the company, the terms and conditions of the consultancy contract will be reviewed with the understanding that the minimum monthly remuneration will be $10,000 (U.S.) through to the end of the contract period.

Mr. Kappelle, based in Almaty, Kazakhstan, has considerable experience in the oil and gas sectors in the area, having negotiated, undertaken and executed significant projects for various international interests.