EuroGas Issues Settles Litigation, Enters Into Oil and Gas Exploration Ventures
VIENNA, AUSTRIA, Oct 16, 2007 (MARKET WIRE via COMTEX) -- EuroGas Inc. ("the company") (PINKSHEETS: EUGS) (HAMB: EUG) today announced some significant corporate developments.
On August 24, 2007, the company and related parties settled long standing litigation that had hindered its ability to conduct its oil and gas operations. The settlement enables EuroGas to resume its oil and gas exploration activities. Please see also the company's recent Securities and Exchange (SEC) filing Form 8K on October 9, 2007 for further information concerning this matter.
On October 8, 2007, the Company entered into an agreement with Ukrnaftogasinvest of Lviv, Ukraine to mutually develop certain producing oil & gas interests located in the Carpathian Mountains of Western Ukraine which are held by Ukrnaftogasinvest, a successful private company working in the oil & gas industry of Western Ukraine. These oil and gas fields are partly developed and are currently producing oil and natural gas. Additional drilling -- to test deeper potentially oil and gas bearing structures -- is required in order to maximize production of these fields.
The oil and gas fields held by Ukrnaftagasinvest are located in Western Ukraine, east of, but in the same favorable geological trend as, EuroGas' former oil and gas assets in Poland which are now held by EuroGas Polska (formerly owned by EuroGas) in Southeast Poland. These properties are the subject of a joint venture between Polish Oil and Gas (PGNiG), Poland's national oil & gas concern, EuroGas Polska sp.zo.o and Aurelian Oil & Gas Ltd., a publicly held British public oil & gas company. PGNiG is the operator of the joint venture.
EuroGas intends to acquire a substantial stake in two oil fields held by Ukrnaftagasinvest which currently have modest oil production. These fields are located close to the Polish border on direct prolongation of the 4,000 square kilometer large concession block held by the PGNiG/EuroGas Polska/Aurelian Joint Venture on the Polish side. EuroGas intends to employ cutting edge seismic technology to identify promising hydrocarbon bearing structures, similar to the work that is being conducted on the PGNiG/EuroGas Polska/Aurelian Joint Venture.
Separately, EuroGas announces that it intends to seek to have its common stock reinstated for trading on the OTC Bulletin Board (OTCBB) in the United States. This will necessitate updating its filings with the SEC, as well as the submission and approval of an application with the National Association of Securities Dealers.
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About EuroGas, Inc.
EuroGas is a publicly traded oil and gas company with assets in Ukraine. The company's common stock trades on the Hamburg Stock Exchange in Germany under the symbol EUG and on the Other OTC (Pink Sheets) in the United States under the symbol EUGS.
Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.
You can identify forward-looking statements by their use of the forward-looking words "anticipate," "estimate," "project," "likely," "believe," "intend," "expect," or similar words. These statements discuss future expectations, contain projections regarding future developments, operations, or financial conditions, or state other forward-looking information. When considering the forward-looking statements made in this press release, you should keep in mind the risks noted and other cautionary statements throughout this press release. You should also keep in mind that all forward-looking statements are based on management's existing beliefs about present and future events outside of management's control and on assumptions that may prove to be incorrect. If one or more risks identified in this press release or other filing materializes, or any other underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected, or intended.
For further information:
Mr. Wolfgang Rauball
President and CEO
EuroGas, Inc.
43-1-2308613-0
Mr. Philippe Niemetz
PAN Consultants Ltd.
212-618-1274
SOURCE: EuroGas, Inc.
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