Sputnik Group Limited

Pogan Invest Corp.

Sulidad Invest & Trade Inc.

Hanseatic Investment Holdings Ltd.

Drake Associates L.P.

Diversified Long Term Group Fund L.P.

Field Nominees Ltd.

November 09, 2006 08:52 ET

Shareholder Group Announces that it is Reconsidering its Offer for Innova Exploration Ltd. 'TSX:IXL'

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2006) - Sputnik Group Limited, Pogan Invest Corp., Sulidad Invest & Trade Inc., Hanseatic Investment Holdings Ltd., Drake Associates L.P., Diversified Long Term Group Fund L.P., Field Nominees Ltd. (collectively, the "Shareholders") today announced that they are reconsidering their intention to offer to acquire up to 6,650,000 common shares of Innova Exploration Ltd. (TSX:IXL) at a price of Cdn$6.75 in cash (the "Offer").

The intent of the Shareholders to make an Offer was announced on October 23, 2006. Subsequently, on October 31, 2006 the Minister of Finance (Canada) announced sweeping reforms to the income tax treatment of certain businesses which are prevalent in the oil and gas sector. While continuing to believe in the future prospects of Innova, the Shareholders believe that the proposed changes are material to the current and future prospects of the Canadian oil and gas sector. Accordingly, the Shareholders intend to review their previous stated intent to make an offer, and Innova's prospects, in light of the proposed new tax regime. Based on this review, the Shareholders will determine their near-term intentions with respect to Innova and will take such action as may be advisable in light of the circumstances.

Innova Exploration Ltd.

Innova is an Alberta-based oil and natural gas company, the operations of which consist of the exploration for, and the development and production of, natural gas and crude oil in the Western Canadian Sedimentary Basin in south-eastern Saskatchewan, Alberta and north-eastern British Columbia.

Cautionary Statements

This news release contains forward-looking statements, which reflect the Shareholders' current beliefs and expectations. These forward-looking statements are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Undue reliance should not be placed on forward-looking statements.

This news release does not constitute or form any part of any offer or invitation to purchase otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security in any jurisdiction. The release, publication or distribution of this news release in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this news release is released, published or distributed should inform themselves about and observe such restrictions.

Contact Information

  • Thomas Seifert
    (212) 644-5067
    Gregory Shirin
    + 7 (495) 725-5000