Maskal Energy Inc.

October 16, 2006 02:15 ET

Maskal Energy Announces Appointment of New President, Private Placement and Related Matters

CALGARY, ALBERTA--(CCNMatthews - Oct. 16, 2006) -

(Not intended for Dissemination in the United States)

Maskal Energy Inc. (TSX VENTURE:MSK) ("Maskal" or the "Corporation") is pleased to announce that it has, effective immediately, appointed Richard P. Mazurkewich, P.Eng as President and Chief Operating Officer of the Corporation. In addition, Mr. Mazurkewich will serve as a member of the Board of Directors of Maskal. Mr. Mazurkewich, most recently, was Vice-President of Operations of Advantage Oil and Gas Ltd. (TSX) for the last 5 years, and prior thereto served as Manager, Production and Facilities with Search Energy Corp. (TSX). Mr. Mazurkewich is a graduate of the University of Alberta with a Bachelor of Science in Engineering and is a member of APEGGA. John R. Garden will continue as the Chief Executive Officer of Maskal.

The Corporation intends to raise, by way of a non-brokered private placement, up to $400,000 through the sale of up to 2 million common shares at $0.20 per share. Proceeds of the offering will be used for exploration purposes on Maskal's Bakken oil prospect near Melita, Manitoba and for general corporate purposes. Mr. Mazurkewich and other insiders of the Corporation may participate in the private placement. The Corporation will also be granting stock options to certain directors, officers and key employees entitling such persons to acquire up to 1.1 million common shares of Maskal exercisable for 5 years at a price of $0.20 per share. Subject to certain exceptions, the options will generally vest as to one third on each of the first, second and third anniversaries of the date of the grant.

All matters disclosed in this news release are subject to regulatory approval.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

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