Eurogas Corporation

Eurogas Corporation

March 05, 2007 11:39 ET

Eurogas and Deutsche Bank Enter Into an Agreement for the Project Financing of the Castor Underground Natural Gas Storage Project in Spain

Deal Provides Technical Expertise with Respect to Project Financing, Valuation and Debt Structure

CALGARY, ALBERTA--(CCNMatthews - March 5, 2007) - Eurogas Corporation (TSX VENTURE:EUG) ("Eurogas") announced today that Deutsche Bank will act as financial advisor to Eurogas with respect to the project financing required for the Castor Underground Natural Gas Storage Project in Spain (the Castor UGS Project).

Deutsche Bank will bring their considerable expertise to Eurogas and both assist and advise on a variety of matters that relate to the valuation and ultimate financing of the project. The immediate goal is to identify the most appropriate financing structure and thereafter complete that and other arrangements as soon as possible.

In this respect, the project is progressing through the usual regulatory process and the company is working in close cooperation with both Spain's Ministry of Industry and ACS Group, the country's largest engineering group and an earlier announced collaborative partner and public affairs advisor in the Castor UGS Project development.

In this latter regard, ACS is assisting Eurogas with the ongoing approval process involving both government and regulatory authorities in Spain, specifically in relation to the granting of an Exploitation Concession. This includes a detailed roadmap to the series of permits required for the full implementation of the Castor UGS Project and the completion of the Front End Engineering and Design Study which was contracted to ACS Group and announced late last year.

Deutsche Bank is a global European powerhouse with recognized expertise in successful advisory services for complex financial transactions. Deutsche Bank was recently named "Global Bond House of the Year 2006" and "EMEA PPP-Deal of the Year 2006" by Project Finance International. Euromoney Project Finance awarded the Bank "Healthcare Deal of the Year 2006".

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

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)
    Eurogas Corporation
    Andrew Constantinidis
    Vice President & CFO
    (403) 264-4985
    (403) 262-8299 (FAX)
    Eurogas Corporation
    250, 435 - 4 Avenue S.W.
    Calgary, Alberta, Canada
    T2P 3A8