Maskal Energy Inc.

August 01, 2006 15:19 ET

Maskal Energy Announces Completion of Qualifying Transaction

CALGARY, ALBERTA--(CCNMatthews - Aug. 1, 2006) - (Not intended for Dissemination in the United States)

Maskal Energy Inc. (formerly Festino Venture Corp.) (TSX VENTURE:MSK) ("Maskal" or the "Corporation") is pleased to announce that it has completed the previously announced acquisition (the "Acquisition") of all of the issued and outstanding shares of Malahat Oil & Gas Ltd., which Acquisition satisfies Maskal's obligation to complete a "qualifying transaction". The TSX Venture Exchange has accepted all relevant documents for filing, and the common shares of Maskal will resume trading on the TSX Venture Exchange on August 1, 2006 under the trading symbol "MSK".

Concurrent with the Acquisition, Maskal completed the sale, by way of brokered private placement, of a total of 6,303,500 common shares comprised of 4,407,500 common shares issued at $0.20 and a further 1,896,000 common shares issued at $0.25 on a "flow through" basis for aggregate gross proceeds to the Corporation of $1,355,500. Leede Financial Markets Inc. acted as agent in connection with the private placement. The 4 month hold period in respect of the subject shares will expire on November 27, 2006. Maskal intends to use the proceeds of the offering for exploration purposes on its Bakken oil prospect near Melita, Manitoba and for general corporate purposes.

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

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