Eurogas Newest PRMajor International Oil Company Enters Into Agreement With EuroGas Affiliate to Evaluate EuroGas' Polish Assets for Potential Acquisition
Ticker Symbol: X:XETRA:EUG.DE U:EUGS X:FRANKFURT:EUG.F ?:HAMB:EUG.H ?:STUT:EUG.SG
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EuroGas, Inc. (PINKSHEETS: EUGS) (FRANKFURT: EUG.F) (XETRA: EUG.DE) (HAMB: EUG.H) (STUT: EUG.SG) today announced that its affiliate EuroGas Polska Sp. z o.o has entered into a Confidentiality & Secrecy Agreement with one of the world's largest oil companies which had expressed an interest in evaluating and possibly acquiring certain EuroGas Polska oil and gas assets. EuroGas Polska is a wholly owned subsidiary of McCallan Oil & Gas UK Ltd., of which 30% is owned by EuroGas, Inc. EuroGas, Inc. also owns an option to acquire the remaining 70% of McCallan which it doesn't currently own.
EuroGas Polska is currently disclosing and submitting to the interested party all relevant geological and technical data, including the latest results from the $ 8,000,000 seismic program at Biesczszady which was conducted by PGNiG, Poland's national oil & gas concern in 2009.
Separately, the company announced that the London based independent petroleum consulting firm Gaffney Cline & Associates submitted an updated reserve report showing a substantial increase in oil reserves at Biesczszady concessions in South East Poland in which EuroGas Polska has a 24% interest.
In a December 2009 "Competent Persons Report" (CPR), as required by the London Stock Exchange ("LSE"), Gaffney Cline & Associates (GCA), a recognized independent UK petroleum consulting firm, submitted to Aurelian Oil & Gas PLC (Aurelian), a publicly traded UK company, its new independent update of Aurelian's oil and gas reserves which was referenced in a January 18, 2010 announcement concerning a EUR 32,000,000 private placement to fund the company's growth plans. According to GCA's CPR, the estimated reserves at Biesczszady, after calculating the results of the 2009 seismic program, are now estimated at between 89 and 131 million barrels of oil net to Aurelian. Aurelian's working interest in Biesczszady is 25%; PGNiG, the operator of the Biesczszady Joint Venture has a 51% interest, while EuroGas holds the remaining 24%.