Eurogas Corporation

Eurogas Corporation

January 04, 2005 18:51 ET

Eurogas Corporation: News Release


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EUROGAS CORPORATION

TSX VENTURE SYMBOL: EUG

JANUARY 4, 2005 - 18:51 ET

Eurogas Corporation: News Release

CALGARY, ALBERTA--(CCNMatthews - Jan. 4, 2005) - Eurogas (TSX
VENTURE:EUG) is pleased to announce the successful closing of the Offer
of Rights to shareholders to subscribe for up to 19,370,174 Common
Shares at a subscription price of $0.39 per share. The Share Issue was
fully subscribed raising a total $7,554,368 which will be used to
finance the Corporation's ongoing drilling and exploration programs in
Spain and Tunisia.

On December 14, 2004, Eurogas commenced drilling operation on the Castor
#1 well on the Corporation's Amposta natural gas storage project in
Spain. The well is currently drilling at 1,675 meters and will be taken
to an estimated 2,000 meter total vertical depth.

In Tunisia, plans are underway for the drilling of an exploration well
early February 2005 on the Corporation's 20% interest El Hamra Permit in
southern Tunisia. At the Corporation's 45% offshore Sfax Permit, data
from the 350 km2 3-D seismic program is being processed and work on
interpretation of these data is expected to commence mid-February. The
$US 3 million seismic program is designed to delineate two known,
undeveloped oil accumulations in the permit.

Eurogas is an independent oil and gas exploration company engaged in
development of an underground natural gas storage facility off Spain's
east coast, and oil and gas exploration activities in Tunisia.

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