Eurogas Corporation

Eurogas Corporation
Eurogas International Inc.

August 18, 2008 17:01 ET

Eurogas Corporation and Eurogas International Inc.: News Release

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2008) - Eurogas Corporation (TSX VENTURE:EUG) and Eurogas International Inc. announce that the Ras El Besh 3 well ("REB3") on the Sfax Offshore Permit in Tunisia reached total depth of 2204 meters. Well logs and formation pressure tests identified the presence of oil in a 10 meter thick carbonate interval in the Reineche formation which was subsequently confirmed by down-hole sampling. The well is to be plugged back and sidetracked to contact 500 meters of horizontal pay section in an operation that is designed to further delineate the extent of the oil accumulation and provide flow rate data in the horizontal section of the hole.

The Reineche formation produces oil and gas from two fields north of the Sfax permit boundary that are owned by others. These fields are located approximately 15 kilometers from REB3 and within 5 kilometers of the northern boundary of the permit. This positive result at REB3 is especially important for future exploration on the Sfax permit as it is the first offshore Reineche oil discovery south of the Kerkennah Islands, and sets up the possibility of a new hydrocarbon trend in the north half of the permit.

The REB3 well also penetrated a deeper horizon that tested oil in the Ras El Besh 2 well. Logs confirm the presence of oil in the El Garia formation but it was believed that the well would not recover sufficient reserves to justify a completion. Further analyses will be carried out to determine a future course of action.

REB3 is the first well drilled under the Farmout Agreement announced on April 8, 2008 between Eurogas, Atlas Petroleum Exploration Worldwide, Ltd. ("APEX") and Delta Hydrocarbons B.V. ("Delta"). In accordance with the agreement with Delta, the cost of the wells, as currently planned are borne by Delta as part of the consideration for the purchase of its 50% participation in the Sfax permit. After Delta has expended USD $125 million, future costs will be shared Eurogas 22.5%, Atlas Petroleum Worldwide Exploration Ltd. (the operator) 27.5%, and Delta 50%.

Jaffar Khan
Eurogas Corporation
Eurogas International Inc.

Certain information set forth in this document, including management's assessment of the Corporations' future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporations' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporations' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporations will derive from them. The Corporations disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.


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