SKANA Capital Corp.
TSX VENTURE : SKN

SKANA Capital Corp.

January 03, 2007 14:59 ET

SKANA Acquires Raven Wing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 3, 2007) - SKANA Capital Corp. (TSX VENTURE:SKN) ("SKANA") is pleased to announce that it has completed the acquisition of Raven Wing Resources (formerly 0772908 BC Ltd.), a transaction announced in its news release of October 30, 2006, in connection with the engagement of its sole owner, Mr. William Daily. Initially the transaction contemplated paying Mr. Daily 250,000 shares of SKANA in exchange for Raven Wing but SKANA ultimately acquired it for nominal consideration. The change allowed SKANA to expedite the acquisition so that it could fund Raven Wing's agreement with Thomasson Partner Associates, Inc. ("TPA") by the agreed deadline of December 31, 2006. In recognition of Mr. Daily's assistance in facilitating the Raven Wing acquisition, SKANA has proposed that 250,000 bonus shares be issued to Mr. Daily subject to TSX Venture Exchange acceptance.

Mr. Daily is a member of the board of SKANA but is immediately relinquishing his position as its Chairman to focus his energies on the development of Raven Wing. To that end, he has assumed the position of CEO of Raven Wing in addition to being its president and director. The Board of Directors of SKANA is extremely pleased to have someone of Mr. Daily's proven operational experience lead the development of Raven Wing. Mr. Daily was formerly a director of Nelson Resources Limited and Director General of Kazakoil-Aktobe LLP. Mr. Greg Clarkes, a current director of SKANA, will assume the position of Chairman of the Board of SKANA vacated by Mr. Daily. The acquisition of Raven Wing, in conjunction with the recent closing of its $30 million private placement, puts SKANA in an excellent position to expand its oil and gas portfolio in 2007.

The principal asset of Raven Wing is its agreement with TPA whereby Raven Wing has the exclusive right to all TPA generated projects and prospects on a first and priority basis, and to have first choice of all projects and prospects generated and marketed through TPA. In addition, TPA will provide ongoing geological and geophysical support for purchased projects and consultancy for non-TPA projects and prospects as requested. In consideration, Raven Wing must pay TPA an annual fee of US$600,000 in three installments of which US$300,000 was paid on execution of the agreement. Pursuant to the TPA agreement, Raven Wing also acquired six initial projects for US$1,100,000 of which US$625,000 was paid on execution of the agreement.

In connection with the six acquired projects under the TPA agreement, Mr. Daily is currently preparing project budgets and development plans in support of SKANA's funding of Raven Wing.

Further to SKANA's news release of December 27, 2006, in connection with the non-brokered private placement, SKANA paid finders' fees of $1,435,303.43. All securities issued in the private placement are subject to a hold period expiring April 23, 2007.

About Thomasson Partner Associates, Inc.

TPA has a fifteen year history within the industry as a leader in providing first quality, technically solid, oil and gas opportunities located in the Rocky Mountains, mid-continent and Appalachian basins. TPA is an oil and gas project generation company made up of over 35 explorationists who have retired from major oil and gas companies. Dr. Ray Thomasson's career has included distinguished positions including Head of Strategic Studies for Royal Dutch Shell Group and Chief Geologist at Shell Oil Company. He has also been President of the American Association of Petroleum Geologists and President of the American Geological Institute. More information on TPA may be found at www.tpaexpl.com.

About SKANA Capital Corp.

SKANA is listed on the TSX Venture Exchange as an Investment Issuer and carries on business as a merchant bank. It makes strategic investments in oil and gas and other resource-based opportunities that it believes will offer excellent returns through its financial involvement and management expertise.

This news release contains certain statements that may be deemed "forward-looking statements". All statements, other than statements of historical fact, that address events or developments that SKANA expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although SKANA believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and production successes or failures, continued availability of capital and financing, inability to obtain required shareholder or regulatory approvals, and general economic market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of SKANA's management on the date the statements are made.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • SKANA Capital Corp.
    Neil Halldorson
    President and CEO
    (604) 669-4899