Maskal Energy Ltd.
TSX VENTURE : MMK

September 22, 2009 12:23 ET

Maskal Energy- Sale of Assets

CALGARY, ALBERTA--(Marketwire - Sept. 22, 2009) -

NOT INTENDED FOR DISSEMINATION IN THE UNITED STATES

Maskal Energy Ltd. (TSX VENTURE:MMK) ("Maskal" or the "Corporation") is pleased to announce that it has entered into a letter of intent (the "LOI") with 3 Martini Ventures Inc. ("3 Martini") for the sale of Maskal's interest in four wells and associated lands ("Assets") in the Dodsland area of Saskatchewan for a purchase price of $1,400,000 and a portion of the total net operating revenue ("NOR") derived from well production of the Assets ("Purchase Price"). The Assets represent all of Maskal's current operating assets. Maskal, 3 Martini and Duce Oil Ltd. ("Duce") are all party to a Joint Operating Agreement ("JOA") dated July 15, 2008 with respect to the Assets. 3 Martini is a private oil and gas company based in Medicine Hat, Alberta. 3 Martini and its directors and officers are at arm's length to Maskal and its directors and officers.

It is proposed that $700,000 of the Purchase Price is to be paid by 3 Martini to Maskal after the shareholders of Maskal approve the transaction and execution of a definitive agreement with respect to the transaction ("Closing Date"). The second $700,000 payment shall be paid by 3 Martini to Maskal four months after the Closing Date. Maskal shall continue to receive one third of the NOR pursuant to the JOA prior to the initial payment of $700,000 and one-sixth of the NOR from the Closing Date until completion of the second payment of $700,000. The initial payment of $700,000 by 3 Martini shall be made by the assumption and payment by 3 Martini of any debts and obligations owed by Maskal to Duce with respect to Maskal's share of any costs and expenses incurred in the exploration, development or operation of the Assets pursuant to the JOA up until the Closing Date.

Completion of the transaction remains subject to the execution of the definitive agreement, the fulfillment of certain closing conditions, the receipt of all required regulatory approvals and approval of the shareholders of Maskal in accordance with applicable corporate law. Maskal plans to call a shareholder meeting with respect to the approval of the transaction in mid November 2009.

The cash proceeds of the sale of the Assets will be applied to funding other potential projects currently under review and general working capital.

Upon completion of this transaction it is likely that Maskal will be transferred to NEX. Further details in this regard will be disclosed in a future press release.

Maskal is the subject of Cease Trade Orders (the "CTOs") issued by the Securities Commissions of Alberta and British Columbia for failure to file interim financial statements in a timely manner. Maskal continues to work with its auditors and the Alberta Securities Commission to resolve the outstanding issues and to have the CTOs revoked. Further updates will be provided as information becomes available.

Neither the TSX Venture Exchange nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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