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Eurogas Corporation: Update on Sfax Offshore Permit, Tunisia

May 16, 2008

CALGARY, ALBERTA--(Marketwire - May 16, 2008) - Eurogas Corporation ("Eurogas" or the "Corporation") (TSX VENTURE:EUG) is pleased to announce the initiation of a drilling program for the Sfax permit offshore Tunisia. A drilling contract has been signed with SeaWolf Oil Services Ltd. to drill two firm wells and two optional wells starting with the Ras El Besh prospect. The Delta Queen, a cantilevered jack up drilling rig, will be mobilized from Malta in late May and is expected to be on the Ras El Besh location to commence drilling operations in June 2008. The first well to be drilled will be REB #3 to evaluate the prospective El Garia formation at a depth of 1800 meters. A second Ras El Besh well is planned immediately following. After the completion of the two Ras El Besh wells, the partners plan to drill a well to appraise the nearby Jawhara oil prospect. Both the Ras El Besh and Jawhara prospects have been drilled in the past by previous operators and tested positively that oil was present in the formation. The current planned drill holes are designed to position the penetration of the prospective formations at levels determined to be potentially more productive based on the information derived from the three dimensional seismic programs that have since been carried out by Eurogas and its partner, APEX. Under the recent farmout agreement with Delta Hydrocarbons (Delta), the costs of the wells 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. 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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