Eurogas Corporation

Eurogas Corporation

January 10, 2005 16:42 ET

Eurogas Corporation ('Eurogas') Progress Report on Castor #1 Drilling Program in Spain


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EUROGAS CORPORATION

TSX VENTURE SYMBOL: EUG

JANUARY 10, 2005 - 16:42 ET

Eurogas Corporation ('Eurogas') Progress Report on
Castor #1 Drilling Program in Spain

CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2005) - Eurogas Corporation
(TSX VENTURE:EUG):

The Castor #1 well currently being drilled by Eurogas on its Amposta
natural gas storage project offshore Spain's east coast, has encountered
significant oil shows in the targeted Amposta Montsia Reservoir. The
well is currently drilling at a measured depth of 1898 meters and will
be taken to 1925 meters before being logged and tested to evaluate the
oil potential of the Montsia Reservoir.

The Amposta Underground Natural Gas Storage facility is designed to
address Spain's urgent need for gas storage on its highly industrialized
east coast. The facility utilizes the Amposta offshore oil reservoir and
will be capable of providing 25% of Spain's future gas storage
requirement.

Eurogas is the proponent for the Amposta project holding a 72% interest
in the natural gas storage project and a 95% Net Profit interest in any
hydrocarbons found on the Castor Exploration permit covering the project
area.

Julio Poscente

Chairman and Chief Executive Officer

This press release contains certain forward-looking statements that
reflect the current views and/or expectations of Eurogas with respect to
its performance, business and future events. Such statements are subject
to a number of risks, uncertainties and assumptions which may cause
actual results to be materially different from those expressed or
implied. Eurogas assumes no future obligation to update these
forward-looking statements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Eurogas Corporation
    Julio Poscente
    Chairman & CEO
    (403) 264-4985
    or
    Eurogas Corporation
    Bruce Sherley
    President & COO
    (403) 264-4985
    (403) 262-8299 (FAX)
    Email: eurogas@eurogascorp.com
    Website: www.eurogascorp.com
    or
    Eurogas Corporation
    520, 333 - 5th Avenue SW
    Calgary, Alberta, Canada
    T2P 3B6
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.