SKANA Capital Corp.
TSX VENTURE : SKN

SKANA Capital Corp.

February 26, 2009 18:14 ET

SKANA Reports Financial Results for Q3

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) - SKANA Capital Corp. ("SKANA") (TSX VENTURE:SKN) announces release of its unaudited consolidated interim financial statements for the three-month period and nine-month period ended December 31, 2008. For the three-month period ended December 31, 2008, SKANA had a consolidated loss of $15,016,934 ($0.28 basic and diluted loss per common share related to continuing operations and $0.00 basic and diluted loss per common share related to discontinued operations) compared to consolidated loss of $411,137 ($0.00 basic and diluted loss per common share related to continuing operations and $0.00 basic and diluted loss per common share related to discontinued operations) for the comparative period in 2007. For the nine-month period ended December 31, 2008, SKANA had a consolidated loss of $16,117,462 ($0.30 basic and diluted loss per common share related to continuing operations and $0.01 basic and diluted loss per common share related to discontinued operations) compared to consolidated loss of $1,503,965 ($0.01 basic and diluted loss per common share related to continuing operations and $0.02 basic and diluted loss per common share related to discontinued operations) for the comparative period in 2007.

The shares of Ryland Oil Corp. and Rainy River Resources Ltd. were trading at significantly below their original costs as at December 31, 2008. Consequently, an impairment loss of $14,773,716 was recognized in the interim consolidated statement of operations and deficit.

As at December 31, 2008 SKANA had cash and cash equivalents of $11,627,089 and carried its marketable securities at fair value of $4,551,595. SKANA maintains all of its cash and cash equivalents with Schedule A banks.

SKANA further announces that through a series of transactions, it has acquired ownership of 1,200,000 common shares of Rainy River Resources Ltd. ("Rainy River"), 3,000,000 shares of Roadrunner Oil and Gas Inc. ("Roadrunner") and 13,269,500 shares of Ryland Oil Corp. ("Ryland") as at December 31, 2008 through the facilities of the TSX Venture Exchange. These transactions were made for investment purposes and SKANA could increase or decrease its investments in Rainy River, Roadrunner and/or Ryland depending on market conditions or any other relevant factor.

SKANA's unaudited consolidated interim financial statements and management discussion and analysis ("MD&A") for the third quarter of fiscal 2008 have been filed on SEDAR and are available for download at www.sedar.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 have significant potential for appreciation through its financial involvement and guidance.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • SKANA Capital Corp.
    Greg Clarkes
    Chairman
    (604) 669-4899