Eurogas Corporation: News Release

• Published in: Marketwire p. 1
• Format: Trade Publication Article
• Language: English
• Published: Toronto Intrado Digital Media Canada Inc 20.12.2007

(CCNMatthews - March 26, 2007) - Eurogas Corporation ("Eurogas" or the "Corporation") (TSX VENTURE:EUG) today announced its financial results for the year ending December 31, 2006. For the year, the Corporation invested $6.5 million in its Castor Underground Natural Gas Storage Project (the "Castor UGS Project" or "Castor") in Spain and $1.8 million on its Sfax exploration program in Tunisia. At December 31, 2006, Eurogas had working capital of $17.0 million and a $6 million line of credit available. As the Corporation is in the development stage, it has not earned any business income and incurred a net loss of $2.7 million during the year. In 2006 Eurogas took two important steps to strengthen its ability to fulfill all of the technical and regulatory tasks that lie ahead. First, the Corporation felt it would be important to have an alliance with a credible company in Spain. Last year's agreement with ACS, one of Spain's leading companies, to provide engineering services and to act on the Corporation's behalf in dealings with governmental and regulatory authorities, strengthens the Corporation's position substantially. ACS quickly initiated the FEED study, a crucial engineering document. The Sfax Permit's large size (4,000 square km or more than 1,500 square miles) and extensive prospectivity led Eurogas and its partner to seek additional participation by a company with a strong track record and demonstrated capability to evaluate its exploration acreage. In May 2006, Eurogas announced a farm-out option agreement with Anadarko Petroleum Corporation that includes the acquisition of two large 3-D seismic programs and the drilling of two exploration wells. The farmout excludes the three prior oil discoveries. The first 3-D seismic survey over 420 km2 commenced in March 2007. The four-phase farm-out option agreement enables Anadarko to earn progressively higher working interests over a three-and-a-half-year period.