Eurogas Corporation
TSX VENTURE : EUG

Eurogas Corporation

March 17, 2008 15:56 ET

Eurogas Corporation News Release

CALGARY, ALBERTA--(Marketwire - March 17, 2008) - Eurogas Corporation (Eurogas) (TSX VENTURE:EUG) is pleased to announce that it has finalized the terms of a rights offering to holders of its Common Shares. Eurogas will be issuing to holders of its outstanding Common Shares of record at the close of business on March 27, 2008, transferable rights certificates to subscribe for Common Shares before 12:00 p.m. (Calgary time) on April 24, 2008, on the terms set out in an amended rights offering circular dated March 14, 2008 (the "Rights Offering Circular") to be mailed by Eurogas to its shareholders. The Rights Offering Circular will also be available on the SEDAR website at www.sedar.com. One right will be issued for each Common Share outstanding and four rights will entitle the holder to purchase one additional Common Share of Eurogas at $0.97 per Common Share. Shareholders who exercise all of their rights will also be entitled to acquire additional Common Shares, if available, pursuant to an additional subscription privilege as described in the Rights Offering Circular. The rights have been conditionally approved for listing on the TSX Venture Exchange until April 24, 2008.

The rights offering is subject to the completion of all applicable regulatory approvals.

Certain directors and officers of Eurogas have advised of their intent to fully exercise their rights and thereby subscribe for approximately 2,697,189 Common Shares. In addition, Dundee Corporation, the major shareholder of the Corporation has agreed to exercise all of its Rights under the Basic Subscription Right and thereby subscribe for at least 15,807,760 Common Shares.

If all rights are exercised, 31,143,690 Common Shares will be issued, for total gross proceeds of approximately $30,209,379. The offering is not subject to any minimum subscription level. Any proceeds raised will be released to Eurogas for its use. Eurogas intends to use the proceeds for working capital purposes.

The offering is not being made in any jurisdiction other than the applicable jurisdictions in Canada (the "Qualified Jurisdictions"), and is not, and under no circumstances is to be construed as, an offering of any securities for sale in or to a resident of any jurisdictions other than the Qualified Jurisdictions or a solicitation therein of an offer to buy or sell securities. Shareholders will be provided with a Rights Offering Circular detailing the offer upon receipt of all necessary regulatory approvals.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The rights and the Common Shares issuable on exercise of the rights will not be and have not been registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Eurogas Corporation is an independent oil and gas exploration company listed on the TSX Venture Exchange under the symbol EUG and is engaged in development of a major underground storage facility offshore the east coast of Spain, and the exploration and development of oil and gas in Tunisia's Gulf of Gabes. For more information on the Corporation, visit the website www.eurogascorp.com.

Jaffar Khan, President & CEO

Certain information set forth in this document, including management's assessment of the Corporation's 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 Corporation's 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 Corporation's 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 Corporation will derive from there. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Eurogas Corporation
    Jaffar Khan
    President & CEO
    (403) 264-4985
    (403) 262-8299 (FAX)
    or
    Eurogas Corporation
    Andrew Constantinidis
    Vice President & CFO
    (403) 264-4985
    (403) 262-8299 (FAX)
    or
    Eurogas Corporation
    250, 435 - 4 Avenue S.W.
    Calgary, Alberta, Canada T2P 3A8
    Email: eurogas@eurogascorp.com
    Website: www.eurogascorp.com