SOURCE: EuroGas, Inc.

April 07, 2010 11:27 ET

EuroGas Acquires Additional 25% Interest in McCallan Oil & Gas (UK), Increasing Its Stake to 55% Majority Interest

EuroGas Also Enters Amended Agreement to Acquire Remaining 45% Interest in McCallan From Regent Ventures to Increase Ownership in McCallan to 100%

NEW YORK, NY--(Marketwire - April 7, 2010) -  EuroGas, Inc. (EuroGas) (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that it has exercised its option to acquire an additional 25% stake in McCallan Oil & Gas (UK) Ltd. (McCallan UK) (a London, England based private company, in which EuroGas already holds a 30%) from Mr. Hans Dietmann, a private investor, in exchange for the issuance of 15 million restricted common shares of EuroGas, Inc. Mr. Dietmann also agreed to return the previously issued 1,000,000 shares of EuroGas preferred shares to the EuroGas treasury for cancellation. As a result, EuroGas now owns a 55% stake in McCallan (UK), a company which owns valuable oil and gas properties in Poland and Ukraine, including promising unconventional and shale gas properties.

In addition, EuroGas also announced that it had entered into an amended agreement to purchase an additional 45% interest in McCallan UK from Regent Ventures Ltd. for 3,000,000 CAD. Regent has now elected to receive payment of 6,000,000 restricted common EuroGas shares in consideration for half (1,500,000 CAD) of the amount due; the remaining 50% interest (1,500,000 CAD) will be paid in cash by June 30, 2010. Regent Ventures received an additional 1,000,000 shares from a non-affiliated third party as part of the transaction.

McCallan (UK) owns a 100% shareholding in EuroGas Polska sp.zo.o (which owns 24% in the Bieszczady Joint Venture Agreement (JOA) with PGNiG, Poland's national oil and gas company (which owns a 51% as operator of the JOA); the remaining 25 % interest in the JOA is owned by Aurelian Oil & Gas Plc, a publicly traded UK company. McCallan also owns EuroGas GmbH (Austria) which in turn owns 33% of Rozmin s.r.o., and 50% of OOO EuroGas Ukraine, a Ukrainian company registered in Kiev Ukraine which explores for coal bed methane and unconventional gas (including shale gas) in Eastern Ukraine.

"As a result of this transaction, EuroGas now owns a controlling interest in McCallan (UK), a company which owns strategically important and valuable conventional and unconventional oil and gas properties, including shale gas, in Poland and Ukraine," said Wolfgang Rauball, Chairman & CEO, EuroGas. "Further, we will soon increase our stake to 100% by making the final 1,500,000 CAD cash payment to Regent Ventures as soon as we close on our previously announced financing with Walter Storm, a longtime major EuroGas shareholder."

About EuroGas, Inc.
EuroGas is a publicly traded oil and gas company with assets in Ukraine and Poland, as well as talc mining interests in the Slovak Republic. The company's common stock trades on the Frankfurt, Hamburg and Stuttgart Stock Exchanges and XETRA in Germany under the symbol EUG and on the Other OTC (Pink Sheets) in the United States under the symbol EUGS. (www.eurogasinc.com)

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by their use of the forward-looking words "anticipate," "estimate," "project," "likely," "believe," "intend," "expect," or similar words. These statements discuss future expectations, contain projections regarding future developments, operations, or financial conditions, or state other forward-looking information. When considering the forward-looking statements made in this press release, you should keep in mind the risks noted and other cautionary statements throughout this press release. You should also keep in mind that all forward-looking statements are based on management's existing beliefs about present and future events outside of management's control and on assumptions that may prove to be incorrect. If one or more risks identified in this press release or other filing materializes, or any other underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected, or intended.

Contact Information

  • For further information, please contact:

    Wolfgang Rauball
    CEO
    EuroGas, Inc.
    Telephone: (212) 618-1274