SOURCE: EuroGas, Inc.

April 13, 2010 09:30 ET

EuroGas Enters Into Confidentiality Agreement With Total on Western Ukrainian Shale Gas Properties

NEW YORK, NY--(Marketwire - April 13, 2010) -  EuroGas, Inc. (EuroGas) (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that through its subsidiary, EuroGas Polska sp.z o.o., it has entered into a confidentiality agreement with Total E&P Activités Pétrolières (Total), a wholly owned subsidiary of Total S.A., one of the world's largest oil companies. The agreement was entered into in connection with the evaluation and possible acquisition by Total of certain rights held by EuroGas Polska's wholly-owned West Ukrainian subsidiary in an onshore region in Western Ukraine. Total has also been evaluating the Bieszczady concession in Poland, in which EuroGas owns a 24% interest.

The properties under evaluation by Total are situated on a coal bed methane (CBM) concession near the Ukrainian/Polish border on which EuroGas was the first foreign oil company to drill a CBM well in Ukraine in 1998. This area within the Ukrainian part of the Lublin trough is offsetting recently acquired shale gas concessions by ExxonMobil, Chevron, Marathon Oil and Polish Oil & Gas (PGNiG) within the Polish part of the Lublin trough on the Polish side of the Polish/Ukrainian border. 

"Over the past 13 years we have done a considerable amount of geological and technical research and have compiled an extensive database of old wells drilled in Western Ukraine," said Wolfgang Rauball, Chairman and CEO, EuroGas. "Our research indicates that the thickness of the shale gas formations under EuroGas' area in the Western Ukrainian portion of the Lublin trough is substantially thicker than those found in the successful shale gas fields in the United States."

Mr. Rauball went on to state, "We are pleased that Total is interested in our unconventional gas assets in Ukraine in addition to its ongoing evaluation of our concession interest in the Bieszczady project with Poland's national oil & gas company PGNiG as operator. The Bieszczady concession was acquired by EuroGas in 1998 and farmed out to PGNiG in 2007 with EuroGas retaining a 24% working interest."

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 and gold mining assets in Tombstone, Arizona, USA. 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