SOURCE: Sovereign Exploration Associates International, Inc.

June 04, 2007 08:06 ET

Sovereign Exploration Associates International, Inc. to Acquire Lavelle Holdings, Inc.

Acquisition Strategy Focuses on Diversifying Opportunities in Marine Related Businesses

NEWTOWN, PA--(Marketwire - June 4, 2007) - Sovereign Exploration Associates International, Inc. (OTCBB: SVXA) ("Sovereign"), a maritime exploration company, today announced it has signed a Letter of Intent (LOI) to acquire 100% of the outstanding shares of Lavelle Holdings, Inc. ("Lavelle"), a privately held offshore project management company providing sub-sea marine services.

Lavelle Holdings, Inc. is a consulting company that specializing in international offshore oil & gas and marine sub sea projects. Lavelle also manufactures primary drilling instrumentation for offshore drilling rigs as well as specialty chemicals for corrosion protection and pipeline cleaning.

"I recently joined Sovereign's senior management team with the intention of rolling in Lavelle to be the first of several vertically integrated marine related businesses with contracts to provide a range of solutions employing a wide variety of equipment with systems experience in saturation diving, air/surface mixed gas diving, deploying and operating remote operated vehicles (ROVs) and survey services for major energy companies, utilities and government agencies," explained Robert Holloway, Senior V.P. of Business Development of Sub-Sea Operations for Sovereign, and former Chairman of Lavelle.

Sovereign also plans to diversify into the salvage of non precious metals in addition to its core treasure trove recovery and preservation activities. As previously announced, Sovereign's 2007 shipwreck recovery operations will focus on the recovery of two shipwreck sites located in Nova Scotia. Both sites are considered to be monetarily and historically rich finds. The Company has received permits for these sites to commence its seasonal operations this summer. Due to their inshore locations, these shipwreck sites will allow for efficient sensing and cost-effective recovery using the highest standards of operations to protect and preserve the artifacts. One of the ships, lost in the 1700s according to various news accounts, was reported to have a cargo of 5 million pounds sterling silver, which at today's prices of silver could yield a recovery of approximately $100 million. The other ship, lost in the 1800s, is reported to have within its general cargo items of gold, silver and jewels which could also yield a very valuable cargo for the Company.

"The proposed acquisition of Lavelle is an important step in diversifying Sovereign and expanding our geographical presence into the Gulf of Mexico and the Caribbean where we foresee the opportunity for significant growth through Lavelle's presence in Houston which is headquarters to many major energy, ocean engineering and offshore oil and gas service companies which are its targeted customer base," commented Peter Knollenberg, Chairman of Sovereign.

The completion of this transaction is subject to a number of conditions, including final board approval and customary closing conditions, and is expected to close this month.

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. (OTCBB: SVXA) is a maritime exploration company that researches, digitally maps, records, and recovers artifacts from shipwreck sites. Based in Newtown, Pennsylvania, the Company targets shallow-water, in-shore projects in locations that are difficult for both recreational divers and unsophisticated salvers to gain access to or recover artifacts. The Company's contracted wreck sites and novel recovery technique combine to present the potential for a near term revenue stream and existing low cost artifact recovery opportunities. The Company has built a strong team of experienced management and knowledgeable business professionals, positioning the Company to become a major maritime artifact recovery company.

The Company cannot guarantee or give any other level of assurance that the shipwrecks or cargoes mentioned above will be located and recovered nor that a claim of ownership might be made against the shipwreck or its cargo by any sovereign authority or company. Pursuant to Section 13 or 15(d) of the Security Exchange Act of 1934, SVXA, has filed form 8-K if required. For more information on the company, please visit www.sea-int.com.

About LaVelle Holdings, Inc.

Lavelle Holdings, Inc., headquartered in Houston, Texas, specializes in offshore project management and sub-sea marine services. The company specializes in offshore pipe lay, sub-sea riser installation, sub-sea cable installation, ROV, and diving services. Lavelle's technical team is one of the best in the industry at implementing complex sub-sea installations and salvage operations.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as the term is defined in the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release the Company will appropriately inform the public.

Contact Information

  • Company Contact:
    Robert D. Baca
    President
    215.968.0200
    Email Contact

    Agency Contact:
    Pam Lagano
    Lagano & Associates, Inc.
    727.480.3082
    Email Contact