Big Sky Energy Corporation
OTC Bulletin Board : BSKO

Big Sky Energy Corporation

October 18, 2005 16:00 ET

Big Sky Announces an Extension to the Escrow Period of its Subscription Receipt and Special Warrant Indentures

CALGARY, ALBERTA--(CCNMatthews - Oct. 18, 2005) - Big Sky Energy Corporation (OTCBB:BSKO) (the "Company") announced today that it is engaged in high-level discussions with the Kazakh Ministry of Energy and Mineral Resources and continues to seek written confirmation as to the current status, such as that received for its Morskoe subsoil-use contract, of its remaining subsoil-use contracts; Atyrau, Liman-2, Dauletaly and Karatal.

As a result, the Company will advise ComputerShare Trust Company of Canada to extend the escrow period pursuant to its Subscription Receipt and Special Warrant Indentures, which were put in place in connection with the private placement by the Company of Common Stock, Subscription Receipts and Special Warrants on August 24, 2005. During the extended escrow period, a Subscription Receipt or Special Warrant holder will have the right to maintain or withdraw its investment. Pending receipt of confirmation from Subscription Receipt and Special Warrant Holders, twenty-four million and seven hundred thousand United States Dollars (US$24,700,000), will remain in the Trustee's escrow account.

It should be noted, however, that no assurances can be given that the Ministry will respond to the Company as to its remaining subsoil-use contracts, in a manner similar to that with respect to the Morskoe subsoil-use contract.

Big Sky Energy Corporation is an international oil and gas company looking to develop the world's most prolific basins in order to become a leading low-cost finder of hydrocarbons, and is currently operating in Kazakhstan's pre-Caspian basin.

NOTE:

1. Neither the Special Warrants, Subscription Receipts nor the Common Shares sold in the Private Placement have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to U.S. persons (other than distributors) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements or the U.S. Securities Act is available. Hedging transactions involving these securities may not be conducted unless in compliance with the U.S. Securities Act.

2. The information contained in this press release contains forward looking statements which are based on the current expectations of the management of Big Sky Energy Corporation only, and actual results may differ materially. For a more detailed discussion of risks and other factors related to Big Sky Energy Corporation, please refer to its Form 10-KSB and Form 10-QSB reports, as filed with the U.S. Securities and Exchange Commission.


Contact Information

  • Big Sky Energy Corporation
    Mr. Matthew Heysel
    Chairman
    (403) 234-8282
    (403) 265-8808 (FAX)
    Email: mh@bigskycanada.com
    or
    Big Sky Energy Corporation
    Mr. S. A. (Al) Sehsuvaroglu
    President and CEO
    7.3272.598.903
    7.3272.597.628 (FAX)
    Email: sas@bigskycanada.com