SKANA Capital Corp.
TSX VENTURE : SKN

SKANA Capital Corp.

April 18, 2008 08:55 ET

SKANA Capital Corp.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2008) - SKANA Capital Corp. (TSX VENTURE:SKN) is pleased to announce that SKANA and its wholly owned subsidiary, Raven Wing Resources Inc., have entered into an agreement with Impact Petroleum Corp. ("Impact"), a private Nevada corporation, for the sale of five oil and gas exploration properties located in Montana, Wyoming and Utah, known as Lewis & Clark, Black Thunder, Donkey Creek, Raven Creek and Wasatch. In addition, Raven Wing has agreed to assign to Impact its Exploration Projects Acquisition Services Agreement with Thomasson Partner Associates Inc. dated December 29, 2006.

Impact has agreed to pay CDN$3,650,000 in cash, of which $250,000 is payable as a deposit within 2 business days. Subject to completion of satisfactory due diligence by May 31, 2008, Impact will pay Raven Wing the balance of $3,400,000 on the targeted closing date of June 30, 2008. Impact may extend the closing date to July 30, 2008 by paying Raven Wing a further non-refundable partial payment of $1,000,000, with the balance of $2,400,000 due on closing.

In addition to the cash payment, Raven Wing will retain a 2.5% Overriding Royalty Interest ("ORRI") in the Lewis and Clark and Black Thunder properties, and an ORRI in the Wasatch property of between 2.5% and 5% depending on the amount of natural gas produced from the Wasatch property. Impact has also agreed to issue to Raven Wing up to 1,600,000 common shares of Impact (or any successor corporation) on an earn-out basis based on average oil and gas production from the Donkey Creek and Raven Creek projects.

"We are very pleased with this transaction," noted SKANA Interim President, Brian Tingle. "By retaining a royalty on production and the right to earn an equity position in Impact, we still have a significant stake in the properties with no financial risk. We believe Impact has a strong management team who will be able to move forward quickly with the successful exploration and development of the projects."

No finder's fee is payable in connection with the transaction.

William Daily, who is a director of Impact and the beneficial beneficial holder of less than 10% of the issued and outstanding shares of Impact, is one of 7 directors of SKANA.

Completion of the transaction is subject to a number of conditions, including completion by Impact of satisfactory due diligence investigations and the acceptance of the transaction by the TSX Venture Exchange.

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 exploration and production successes or failures, availability of capital and financing, results of due diligence investigation and fund raising by Impact, 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.
    Greg Clarkes
    Chairman of the Board
    (604) 669-4899