VANCOUVER, British Columbia--(BUSINESS WIRE)--June 23, 2004--Scarab Systems, Inc. ("Scarab") (OTCBB:SBSY - News) is pleased to announce that it has closed the previously announced Lease Purchase and Sale Agreement with GeoTrends-Hampton International LLC ("GHI") to acquire 100% of GHI's petroleum and natural gas rights to a number of oil and gas leases (the "Leases") for the Coos Bay Basin prospect, located onshore in the Coos Bay Basin of Oregon. Scarab completed the purchase through its wholly owned subsidiary, Methane Energy Corp. ("MEC"). The assets include technical information on the prospects, fee leases, State leases, lease options and agreements controlling mineral rights covering approximately 50,000 acres. As consideration, Scarab has agreed to pay GHI a total of $300,000 USD in cash, and will issue 1,800,000 restricted shares of Scarab's Common Stock in three performance based tranches. The first tranche of 600,000 shares has been issued.
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Scarab estimates that up to 100,000 acres in the Coos Bay Basin are potentially prospective for coalbed methane and conventional natural gas production. In 1993, two wells were drilled and tested on the Coos Bay Prospect by Carbon Energy International on lands now under lease agreement by Scarab. The gas in place indicated volumes per 640 acre section, of 12.4 billion cubic feet ("bcf") and 7.6 bcf according to Sproule Associates, Ltd., who reviewed the prospects for Scarab. In comparison to other similar geological areas, according to Sproule, the coals of the Powder River Basin holds an estimated 2 to 4 bcf per section, Horseshoe Canyon in Alberta holds an estimated 2 to 5 bcf per section, the Raton Basin holds an estimated 12.4 bcf per section, and the Warrior Basin coals hold approximately 3.7 bcf per section.

Accordingly, Scarab estimates that there is likely sufficient gas in the Coos Bay Basin to make the project commercially feasible, and could potentially exceed one trillion cubic feet. Additional testing will be required to prove up the Basin's reserves.

Scarab, through its wholly owned subsidiary MEC, is currently finalizing lease commitments for an additional 10,000 acres, and has identified approximately 30,000 to 40,000 additional acres falling within the Coos Bay Basin Prospect. Scarab's objective is to achieve a land lease position of over 100,000 acres before the end of this year, although there is no assurance that it can reach that goal.

"Scarab is pleased to conclude the acquisition of the Coos Bay Basin project and is looking forward to commencing Phase One of its exploration program this fall which is expected to include a multi-hole core drilling program to test the relative coal thickness, permeability and porosity. Scarab is looking forward to acquiring additional evidence further confirming the existence of a large in place gas reserve," stated Mr. Thomas Mills, President of Scarab Systems, Inc.

In other developments, Scarab has completed a private placement raising gross proceeds of $200,000 USD. The proceeds will be used to help fund the acquisition of oil and gas leases for its Coos Bay Basin prospect in Oregon, and for general working capital.

Under this placement, Scarab issued 500,000 units at a price of $0.40 per unit. Each unit consists of a share and a non-transferable share purchase warrant. Each warrant will entitle the holder to purchase an additional share in the capital of Scarab at a price of $0.55 per common share for a period of two years from the date of closing. The shares issued in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act of 1933. The placees were granted registration rights and the units will be registered.

Additionally, Scarab is proceeding with a change of name to "Torrent Energy Corporation", which is subject to shareholder approval at a meeting of shareholders scheduled for July 13, 2004.

About GeoTrends-Hampton International, LLC (GHI)

GHI is a Limited Liability Company that develops petroleum, natural gas, coalbed methane and other natural resource opportunities. GHI is privately owned with offices in Aurora, Colorado and Maple Valley, Washington. The company principals have considerable experience in petroleum exploration, with specific expertise focused in the areas of coalbed methane prospect generation and technologies.

About Scarab Systems, Inc.

Scarab Systems, Inc. is engaged in the acquisition, exploration and development of natural gas and coalbed methane properties in the United States. Its current focus is on the development of the Coos Bay Basin project in Oregon.

On behalf of the Board of Directors,

SCARAB SYSTEMS, INC.

Thomas Mills, President

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For more information contact: Head Office Contact:
Thomas Mills Suite 528 - 666 Burrard Street
604-639-3178 Vancouver, BC V6C 2X8

_____________________________________________

Form 8-K for SCARAB SYSTEMS INC

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23-Jun-2004

Acquisition or Disposition of Assets and Financial Statements & Exhibits

Item 2. Acquisition or Disposition of Assets.
We closed a Lease Purchase and Sale Agreement (the "Agreement"), as amended,with Methane Energy Corp. ("Methane") and Geotrends-Hampton International LLC("GHI") to purchase, through our subsidiary, Methane, GHI's undivided workinginterests' in certain mineral lease assets for the Coos Bay Basin prospectslocated onshore in the Coos Bay Basin of Oregon. To acquire these mineral leaseassets, the Company will pay a total of US$300,000 (the "Cash Consideration")and will issue 1,800,000 restricted common shares (the "Consideration Shares").The Cash Consideration and Consideration Shares will be paid in instalments asset out in Section 4 of the Agreement. The first tranche of 600,000 shares havebeen issued.

Risk factors relating to our Company

Likelihood of Profit

Our securities must be considered highly speculative, generally because of thenature of our business and the early stage of its development. We are engaged inthe business of exploring and, if warranted, developing commercial reserves ofoil and gas. Our properties are in the exploration stage only and are withoutknown reserves of oil and gas. Accordingly, we have not realized a profit fromour operations to date and there is little likelihood that we will realize anyprofits in the short term. Any profitability in the future from our businesswill be dependent upon locating and developing economic reserves of oil and gas,which itself is subject to numerous risk factors as set forth herein.

Lack of Financial Resources

Our ability to continue exploration and, if warranted, development of ourproperties will be dependent upon our ability to raise significant additionalfinancing. If we are unable to obtain such financing, a portion of our interestin our properties may be lost. We have limited financial resources and limitedcash flow from operations and we are dependent for funds on our ability to sellour common shares, primarily on a private placement basis. There can be noassurance that we will be able to obtain financing on that basis in light offactors such as the market demand for our securities, the state of financialmarkets generally and other relevant factors. The method of financing employedby us to date results in increased dilution to the existing shareholders eachtime a private placement is conducted.

There can be no assurance that additional funding will be available to us forexploration and development of our projects or to fulfil our obligations underany applicable agreements. Although historically we have announced additionalfinancings to proceed with the development of some of our previous properties,there can be no assurance that we will be able to obtain adequate financing inthe future or that the terms of such financing will be favorable. Failure toobtain such additional financing could result in delay or indefinitepostponement of further exploration and development of our projects with thepossible loss of such properties.

Potential of Substantial Dilution

It is likely that in order to obtain additional funds as needed, we will have tosell additional securities including, but not limited to, its common stock, theeffect of which may result in a substantial dilution of the present equityinterests of our shareholders.

Financial Considerations

Our decision as to whether our properties contain commercial oil and gasdeposits and should be brought into production will require substantial fundsand depend upon the results of exploration programs and feasibility studies andthe recommendations of duly qualified engineers, geologists, or both. Thisdecision will involve consideration and evaluation of several significantfactors including but not limited to: (1) costs of bringing a property intoproduction, including exploration and development work, preparation ofproduction feasibility studies, and construction of production facilities; (2)availability and costs of financing; (3) ongoing costs of production; (4) marketprices for the oil and gas to be produced; (5) environmental complianceregulations and restraints; and (6) political climate, governmental regulationand control.

Property Defects

We have not obtained title reports with respect to our oil and gas propertiesbut believe our interests are valid and enforceable; however, our informationdoes not guarantee title against all possible claims. The properties may besubject to prior unregistered agreements, native land claims or transfers whichhave not been recorded or detected through title research. We have not conductedthorough title searches and there may be claims to our properties that wouldhave been evident if we had conducted title searches. Additionally, the landupon which we hold oil and gas leases may not have been surveyed; therefore, theprecise area and location of such interests may be subject to challenge.

Need to Manage Growth

In the event our properties commence production, we could experience rapidgrowth in revenues, personnel, complexity of administration and in other areas.There can be no assurance that we will be able to manage the significant strainsthat future growth may place on our administrative infrastructure, systems, andcontrols. If we are unable to manage future growth effectively, our business,operating results and financial condition may be materially adversely affected.

Dependence on Key Personnel/Employees

We are dependent on our ability to hire and retain highly skilled and qualifiedpersonnel. We face competition for qualified personnel from numerous industrysources, and there can be no assurance that we will be able to attract

and retain qualified personnel on acceptable terms. We do not have key maninsurance on any of our employees. The loss of service of any of our keypersonnel could have a material adverse effect on our operations or financialcondition.

Conflicts of Interest

In addition to their interest in our company, our management currently engages,and intends to engage in the future, in the oil and gas business independentlyof our company. As a result, conflicts of interest between us and management ofour company might arise.

Risks Relating to the Industry

Oil and Gas Exploration

Exploration for economic reserves of oil and gas is subject to a number of riskfactors. While the rewards to an investor can be substantial if an economicallyviable discovery is made, few of the properties that are explored are ultimatelydeveloped into producing oil and/or gas wells. Our properties are in theexploration and development stage only and are without proven reserves of oiland gas. There can be no assurance that we will establish commercial discoverieson any of our properties.

Potential Profitability of Oil and Gas Ventures Depends Upon Factors Beyond theControl of Our Company

The potential profitability of oil and gas properties is dependent upon manyfactors beyond our control. For instance, world prices and markets for oil andgas are unpredictable, highly volatile, potentially subject to governmentalfixing, pegging, controls, or any combination of these and other factors, andrespond to changes in domestic, international, political, social, and economicenvironments. Additionally, due to worldwide economic uncertainty, theavailability and cost of funds for production and other expenses have becomeincreasingly difficult, if not impossible, to project. These changes and eventsmay materially affect our financial performance.

Adverse weather conditions can also hinder drilling operations. A productivewell may become uneconomic in the event water or other deleterious substancesare encountered which impair or prevent the production of oil and/or gas fromthe well. In addition, production from any well may be unmarketable if it isimpregnated with water or other deleterious substances. The marketability of oiland gas which may be acquired or discovered will be affected by numerous factorsbeyond our control. These factors include the proximity and capacity of oil andgas pipelines and processing equipment, market fluctuations of prices, taxes,royalties, land tenure, allowable production and environmental protection. Theextent of these factors cannot be accurately predicted but the combination ofthese factors may result in our company not receiving an adequate return oninvested capital.

Competitiveness of Oil and Gas Industry

The oil and gas industry is intensely competitive. We compete with numerousindividuals and companies, including many major oil and gas companies, whichhave substantially greater technical, financial and operational resources andstaffs. Accordingly, there is a high degree of competition for desirable oil andgas leases, suitable properties for drilling operations and necessary drillingequipment, as well as for access to funds. There can be no assurance that thenecessary funds can be raised or that any projected work will be completed.

Fluctuating Price and Demand

The marketability of natural resources which may be acquired or discovered by uswill be affected by numerous factors beyond our control. These factors includemarket fluctuations in oil and gas pricing and demand, the proximity andcapacity of natural resource markets and processing equipment, governmentalregulations, land tenure, land use, regulation concerning the importing andexporting of oil and gas and environmental protection regulations. The exacteffect of these factors cannot be accurately predicted, but the combination ofthese factors may result in us not receiving an adequate return on investedcapital to be profitable or viable.

Comprehensive Regulation of Oil and Gas Industry

Oil and gas operations are subject to federal, state, and local laws relating tothe protection of the environment, including laws regulating removal of naturalresources from the ground and the discharge of materials into the environment.Oil and gas operations are also subject to federal, state, and local laws andregulations which seek to maintain health and safety standards by regulating thedesign and use of drilling methods and equipment. Various permits fromgovernment bodies are required for drilling operations to be conducted; noassurance can be given that such permits will be received. No assurance can begiven that environmental standards imposed by federal, provincial, or localauthorities will not be changed or that any such changes would not have materialadverse effects on our activities. Moreover, compliance with such laws may causesubstantial delays or require capital outlays in excess of those anticipated,thus causing an adverse effect on us. Additionally, we may be subject toliability for pollution or other environmental damages which it may elect not toinsure against due to prohibitive premium costs and other reasons.

Environmental Regulations

In general, our exploration and production activities are subject to certainfederal, state and local laws and regulations relating to environmental qualityand pollution control. Such laws and regulations increase the costs of theseactivities and may prevent or delay the commencement or continuance of a givenoperation. Compliance with these laws and regulations has not had a materialeffect on our operations or financial condition to date. Specifically, we aresubject to legislation regarding emissions into the environment, waterdischarges and storage and disposition of hazardous wastes. In addition,legislation has been enacted which requires well and facility sites to beabandoned and reclaimed to the satisfaction of state authorities. However, suchlaws and regulations are frequently changed and we are unable to predict theultimate cost of compliance. Generally, environmental requirements do not appearto affect us any differently or to any greater or lesser extent than othercompanies in the industry.

We believe that our operations comply, in all material respects, with allapplicable environmental regulations.

We intend to acquire and maintain insurance coverage customary to the industry;however, it is not fully insured against all environmental risks. As well,coverage will depend on cost and we have not yet determined that we are in afinancial position to acquire insurance.

Risks Associated with Drilling

Drilling operations generally involve a high degree of risk. Hazards such asunusual or unexpected geological formations, power outages, labor disruptions,blow-outs, sour gas leakage, fire, inability to obtain suitable or adequatemachinery, equipment or labour, and other risks are involved. We may becomesubject to liability for pollution or hazards against which it cannot adequatelyinsure or which it may elect not to insure. Incurring any such liability mayhave a material adverse effect on our financial position and operations.

Government Regulation/Administrative Practices

There is no assurance that the laws, regulations, policies or currentadministrative practices of any government body, organization or regulatoryagency in the United States or any other jurisdiction, will not be changed,applied or interpreted in a manner which will fundamentally alter the ability ofthe Company to develop, operate, export or market its products.

The actions, policies or regulations, or changes thereto, of any government bodyor regulatory agency, or other special interest groups, may have a detrimentaleffect the Company. Any or all of these situations may have a negative impact onone or more of the Company's ability to operate and/or its profitably.

Item 9. Regulation FD Fair Disclosure.

We have closed a private placement resulting in gross proceeds of $200,000. Wehave issued 500,000 units at a price of $0.40 per unit. Each unit consists of ashare and a non-transferable share purchase warrant. Each warrant will entitlethe holder to purchase an additional share in the capital of our company atprice of $0.55 per common share for a period of two years from the date ofclosing. The units will be registered pursuant to a Registration Rightsagreement. The proceeds will be used to acquire and develop our newly acquiredcoalbed methane mineral claims in Oregon and for general working capital.

We have also signed an investor relations agreement with Eclips VenturesInternational, a company based in Netherlands. Eclips will provide us withinvestor relations services for one year and we will pay them $70,000 and300,000 shares of common stock.

Item 7. Financial Statements and Exhibits.
10.1 Lease Purchase and Sale Agreement between Scarab Systems Inc., MethaneEnergy Corp. and Geotrends Hampton International LLC dated May 11, 2004(incorporated by reference to our Current Report on Form 8-K filed on May 20,2004).

10.2 Amending Agreement to Lease Purchase and Sale Agreement dated May 19, 2004.

10.3 Second Amending Agreement to Lease Purchase and Sale Agreement dated June11, 2004.

10.4 Investor Relations Agreement between Scarab Systems Inc. and EclipsVentures International dated June 11, 2004.
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Press Release Source: Scarab Systems, Inc.

Scarab Systems, Inc. Announces Closing of Private Placement
Friday May 21, 9:25 am ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 21, 2004--Scarab Systems, Inc. ("Scarab") (OTCBB:SBSY - News) is pleased to report that the Company has completed a private placement raising gross proceeds of $505,025.50. The proceeds will be used to acquire oil and gas leases for its Coos Bay Basin prospect in Oregon, and for general working capital.
Under this placement, Scarab issued 1,442,930 units at a price of $0.35 per unit. Each unit consists of a share and a non-transferable share purchase warrant. Each warrant will entitle the holder to purchase an additional share in the capital of Scarab at a price of $0.50 per common share for a period of two years from the date of closing.

On behalf of the Board of Directors,

SCARAB SYSTEMS, INC.

Tom Mills, President

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For more information contact: Head Office Contact:
Thomas Mills Suite 528 - 666 Burrard Street
604-639-3178 Vancouver, BC V6C 2X8

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Due Da Due......But Be Quick About It!!!!!

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