February 6, 2008

Klabzuba Oil & Gas, Inc. (“Klabzuba”), a privately owned Denver based company, has initiated a process for the sale of its oil & natural gas and related assets located in Montana . Klabzuba has retained Scotia Waterous Inc. (“Scotia Waterous”) as its exclusive financial advisor to assist in this process.

Klabzuba's properties are located in the Bearpaw area of North Central Montana and include properties in Blaine , Hill, Chouteau and Fergus Counties . Net production from the properties is approximately 15 MMcfe/d (95% gas, 80% operated). Klabzuba's assets also include controlling interest in key infrastructure, drilling operations, and in excess of 300,000 net acres of undeveloped land.

Detailed information is expected to be available in April 2008.

Any questions regarding the Klabzuba opportunity should be directed to a Scotia Waterous representative listed below: