Eurogas Corporation
TSX VENTURE : EUG

Eurogas Corporation

May 12, 2008 22:26 ET

Eurogas Corporation: News Release

CALGARY, ALBERTA--(Marketwire - May 12, 2008) - Eurogas Corporation ("Eurogas" or the "Corporation") (TSX VENTURE:EUG) today announced its financial results for the three months ending March 31, 2008. The Corporation earned $101 thousand during the quarter.

In Spain, in accordance with agreements signed December 20, 2007, control of Escal and the Castor project has passed to ACS Servicios Comunicaciones y Energia, S.L. ("ACS"). ACS is responsible for any funding required and spent $851 thousand during the first quarter. ACS has agreed that, within 25 days of the grant of the Development Concession, it will repay to CLP most of the amount of its prior investment in the Castor Project which is approximately EUR 30 million (approximately $49 million using the March 31 exchange rate) of which approximately $44 million will be net to Eurogas.

In Tunisia, the Corporation invested $1.3 million during the quarter. Subsequent to the end of the quarter the Corporation announced that, along with its operating partner Atlas Petroleum Exploration Worldwide Ltd. ("APEX"), it had entered into a Farmout Agreement with Delta Hydrocarbons B.V. ("Delta") with respect to the Sfax permit. The agreement has received all regulatory approvals. Under the agreement, Delta has committed to spend US$125 million on the Sfax permit for a 50% participation. Included in this amount, and as part of the transaction, Eurogas and APEX will be entitled to repayment of past exploration costs incurred on the permit, of which approximately US$11 million is net to the Corporation. Upon meeting its expenditure commitments, Delta would own a 50% participating interest in the farmout area, the Corporation would own a 22.5% participating interest and APEX would own a 27.5% participating interest.

Eurogas has filed its consolidated financial statements and related Management Discussion and Analysis for the period ended March 31, 2008 with Canadian securities regulatory authorities on the System for Electronic Document Analysis and Retrieval ("SEDAR").

Eurogas Corporation is an independent oil and gas exploration company listed on the TSX Venture Exchange under the symbol EUG. The company is engaged in the development of a major underground storage facility off the east coast of Spain and the exploration and development of oil and gas in Tunisia's Gulf of Gabes. More information is available on the company 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