Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2000-11-22 22:21 ET - News Release



Digital Gas Announces Spin-off and China Update

NEW YORK, Nov 22, 2000 /PRNewswire via COMTEX/ -- Digital Gas, Inc. (DIGG - Pink
Sheets) today announced that it plans to form a separate oil & gas enhancement
technology company for the Canadian market.

Earlier this month, Digital gave a presentation in Calgary to one of the world's
leading business advisory firms on the potential of its Dong Sheng contract. At
the same meeting Digital reviewed a highly prospective Canadian oil & gas
property and outlined its plan to operate a separate enhancement company for the
Canadian market. Digital has since received an offer by the advisory firm to
advise the Canadian enhancement subsidiary, which shall be owned in whole or
part by Digital shareholders. Digital accepted the offer.

With the business advisor in place, Digital began negotiating with a Canadian
investment banker to take the enhancement subsidiary public in Canada and assist
it in the raising of drilling and operational funds. The business advisor will
assist in the aforementioned process and when the investment banker is chosen,
Digital will provide additional information regarding the business advisor, the
investment banker and its plan to transfer all or part of the ownership of the
Canadian enhancement subsidiary to its shareholders.

In a separate development, Digital Gas reports that its oil & gas enhancement
team has just arrived at the offices of Dong Sheng Corporation of Shandong
Province, Peoples Republic of China to improve the oil & gas production and
field recoveries on the first 23 wells in Dong Sheng's Weibei Field. These wells
have wax problems. Digital's team analyzed oil and water samples taken from the
October trip and arrived with the wax removal solution.

Digital Gas will earn a significant percentage of the total production of each
Dong Sheng field for little or no direct investment. If the current enhancement
program in the Weibei Field is successful, significant cash flow will be earned
as early as December.


For further information, contact Leo Murray at [phone].

SOURCE Digital Gas, Inc.


CONTACT: Leo Murray of Digital Gas, Inc., 212-856-4496
(DIGG)

http://www.prnewswire.com

(C) 2000 PR Newswire. All rights reserved.

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KEYWORD: New York
China
INDUSTRY KEYWORD: OIL
UTI
SUBJECT CODE: PDT

STOCK SYMBOLS: [(digg)]