SOURCE: EuroGas, Inc.

July 08, 2010 03:00 ET

Well Location for First Polish Carpathian Thrust Fold Belt Determined, Drilling to Commence in Q4 2010

Target Is for up to 100 Million Barrels of Oil

NEW YORK, NY--(Marketwire - July 8, 2010) -  EuroGas, Inc. (EuroGas) (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that the first well on the Bieszczady License Block (BLB) in the Carpathian Thrust Fold Belt in southeast Poland will be drilled in an area that comprises approximately 10% of the entire Bieszczady License Area (BLA), which in turn encompasses approximately 3,500 square kilometres (approximately 1,000,000 acres).

The well, which is expected to spud in the fourth quarter 2010, will target an oil prospect of up to 100,000,000 barrels of oil, according to Aurelian Oil and Gas PLC, whose Energia Bieszczady.Sp. z o.o. (a 100% subsidiary of Aurelian Oil and Gas Poland Sp. z o.o.) owns a 25% interest in Bieszczady. The site of the well location was determined after an extensive seismic program conducted in 2008 and 2009; the well is expected to take two to three months to drill, with results expected in December 2010, according to Aurelian Oil and Gas. The operator is Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), Poland's national oil and gas concern, which owns a 51% interest in the Bieszczady license. EuroGas' subsidiary EuroGas Polka Sp. z o.o. owns a 24% interest.

A number of reservoirs, all of which are proven producers in the region, are being targeted by this well and the current prospect will be drilled to a depth of around 4,600m. There are several other similar sized prospects on trend which will be derisked in the event of success of this first well. Using 2D data obtained in 2008/2009, Aurelian Oil and Gas estimates that the area being targeted by this program, which represents only 10% of the total BLA, could contain up to 680 million barrels of unrisked prospective resources.

Other work planned for the BLA is a further 300 km of 2D seismic acquired on the licence, starting in August 2010. This survey will be shot to the north and east of the existing 2D covered area and it is hoped that the prospect inventory for the license will be further enlarged with new prospects following the interpretation of this new survey in the first or second quarter 2011.

About EuroGas, Inc.

EuroGas is a publicly traded oil and gas company with assets in Ukraine and Poland, as well as talc mining interests in the Slovak Republic and gold, silver mining assets in Tombstone, Arizona, USA. The company's common stock trades on the Frankfurt, Hamburg and Stuttgart Stock Exchanges and XETRA in Germany under the symbol EUG and on the Other OTC (Pink Sheets) in the United States under the symbol EUGS. (www.eurogasinc.com)

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Contact Information

  • For further information, please contact:
    Wolfgang Rauball
    Chairman and CEO
    EuroGas, Inc.
    Telephone: (212) 618-1274