EuroGas Ups Interest in McCallan

EuroGas, Inc. has entered into an agreement to purchase the remaining 45% interest in McCallan Oil & Gas (U.K.) which it did not own from Regent Ventures Ltd.

McCallan's main assets are its wholly-owned subsidiaries EuroGas Polska sp.zo.o ("EuroGas Polska"), a Polish company, and Vienna, Austria-based EuroGas GmbH ("EuroGas Austria").

EuroGas Polska owns a 24% interest in a large Joint Operating Agreement (JOA) operated by Poland's national oil & gas concern Polish Oil & Gas Company ("PGNiG"), which itself owns 51% in the JOA. The balance of 25% is held by Aurelian Oil & Gas Plc.

The JOA comprises approximately 3,200 square kilometers with 10 oil and gas concessions in the Polish Carpathian Mountains originally owned by EuroGas Polska and farmed out to PGNIG in the fall of 2006.

PGNiG and the Polish Ministry of Environment and Natural Resources have publicly stated in the Annual Reports on Poland's hydrocarbon reserves the existence of a potential 300,000,000 Barrels of Oil in Place in the southern portion of the concession area.

EuroGas Austria's holdings include 50% ownership of OOO EuroGas Ukraine, which explores for coal bed methane and unconventional gas (including shale gas) in Eastern Ukraine.

Source: Eurogas