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Eurogas Commences Drilling Ras el Besh Well in Tunisia

June 16, 2008

CALGARY, ALBERTA--(Marketwire - June 16, 2008) - Eurogas Corporation ("Eurogas" or the "Corporation") (TSX VENTURE:EUG)is pleased to announce that drilling commenced on June 16, 2008 on the Ras el Besh structure on the Sfax Exploration Permit in Tunisia. The Ras el Besh 3 ("REB3") well is the first well drilled by Eurogas and its partners on this oil structure located 30 kilometers off the east coast of Tunisia in the Gulf of Gabes in 12 meters of water. Two prior wells, REB1 and REB2, drilled by a previous operator in the 1990's were located off the crest of the structure and were abandoned after REB2 tested oil to surface at an equivalent rate of 612 bopd. The main target for the REB3 will be the Tertiary El Garia carbonates that produce oil and gas in several large fields along a trend that extends from offshore Libya through the Sfax permit to onshore Tunisia. REB3 will initially be drilled as a vertical pilot hole to a depth of 1,800 meters in order to evaluate the reserve potential, and, depending on the results of the evaluation, will then be sidetracked horizontally for approximately 1 kilometer. The drilling of REB3 could take up to 70 days depending on the results of the well. The Delta Queen jack-up rig, owned by Sea Wolf Oil Services Limited, has been contracted to drill two wells with an option for two additional wells. Subject to favorable results of the REB3 well, an additional well, REB4, will be drilled in the Ras el Besh structure. After drilling at Ras el Besh has been completed, the rig will be moved to evaluate the Jawhara oil structure, located approximately 30 kilometers south of Ras el Besh, which was also drilled by a previous operator, testing oil to surface at an equivalent rate of 1200 bopd. REB3 is the first well drilled under the partnership arrangement announced on April 8, 2008 between Eurogas, Atlas Petroleum Exploration Worldwide, Ltd. ("APEX") and Delta Hydrocarbons B.V. ("Delta"). In accordance with the partnership agreement with Delta, the costs of the wells, as currently planned, will be borne by Delta, as part of a larger commitment to earn a 50 % participation in the Sfax permit. After the total commitment has been fulfilled by Delta, Eurogas will retain 22.5%, APEX 27.5% and Delta 50% participating interest in the Sfax Offshore Permit. Eurogas Corporation is an independent oil and gas exploration company listed on the TSX Venture Exchange under the symbol EUG and is engaged in development of a major underground storage facility offshore the east coast of Spain, and the exploration and development of oil and gas in Tunisia's Gulf of Gabes. For more information on the Corporation, visit the website www.eurogascorp.com. 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.
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