some news from EUGS6 million shares for $1.5 million, remaining $1.5 million deferred to June 30th
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EuroGas Acquires Additional 25% Interest in McCallan Oil & Gas (UK), Increasing Its Stake to 55% Majority Interest
2010-04-07 11:26 ET - News Release
NEW YORK, NY-- (MARKET WIRE)-- 04/07/10
EuroGas, Inc. (EuroGas) (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA:EUG) (HAMB: EUG) (STUT: EUG) today announced that it has exercised itsoption to acquire an additional 25% stake in McCallan Oil & Gas(UK) Ltd. (McCallan UK) (a London, England based private company, inwhich EuroGas already holds a 30%) from Mr. Hans Dietmann, a privateinvestor, in exchange for the issuance of 15 million restricted commonshares of EuroGas, Inc. Mr. Dietmann also agreed to return thepreviously issued 1,000,000 shares of EuroGas preferred shares to theEuroGas treasury for cancellation. As a result, EuroGas now owns a 55%stake in McCallan (UK), a company which owns valuable oil and gasproperties in Poland and Ukraine, including promising unconventionaland shale gas properties.
In addition, EuroGas also announced that it had entered into anamended agreement to purchase an additional 45% interest in McCallan UKfrom Regent Ventures Ltd. for 3,000,000 CAD. Regent has now elected toreceive payment of 6,000,000 restricted common EuroGas shares inconsideration for half (1,500,000 CAD) of the amount due; the remaining50% interest (1,500,000 CAD) will be paid in cash by June 30, 2010.Regent Ventures received an additional 1,000,000 shares from anon-affiliated third party as part of the transaction.
McCallan (UK) owns a 100% shareholding in EuroGas Polskasp.zo.o (which owns 24% in the Bieszczady Joint Venture Agreement (JOA)with PGNiG, Poland's national oil and gas company (which owns a 51% asoperator of the JOA); the remaining 25 % interest in the JOA is ownedby Aurelian Oil & Gas Plc, a publicly traded UK company. McCallanalso owns EuroGas GmbH (Austria) which in turn owns 33% of Rozmins.r.o., and 50% of OOO EuroGas Ukraine, a Ukrainian company registeredin Kiev Ukraine which explores for coal bed methane and unconventionalgas (including shale gas) in Eastern Ukraine.
"As a result of this transaction, EuroGas now owns acontrolling interest in McCallan (UK), a company which ownsstrategically important and valuable conventional and unconventionaloil and gas properties, including shale gas, in Poland and Ukraine,"said Wolfgang Rauball, Chairman & CEO, EuroGas. "Further, we willsoon increase our stake to 100% by making the final 1,500,000 CAD cashpayment to Regent Ventures as soon as we close on our previouslyannounced financing with Walter Storm, a longtime major EuroGasshareholder."
About EuroGas, Inc.
EuroGas is a publicly traded oil andgas company with assets in Ukraine and Poland, as well as talc mininginterests in the Slovak Republic. The company's common stock trades onthe Frankfurt, Hamburg and Stuttgart Stock Exchanges and XETRA inGermany under the symbol EUG and on the Other OTC (Pink Sheets) in theUnited States under the symbol EUGS. (www.eurogasinc.com)
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements intended toqualify for the safe harbor from liability established by the PrivateSecurities Litigation Reform Act of 1995. You can identifyforward-looking statements by their use of the forward-looking words"anticipate," "estimate," "project," "likely," "believe," "intend,""expect," or similar words. These statements discuss futureexpectations, contain projections regarding future developments,operations, or financial conditions, or state other forward-lookinginformation. When considering the forward-looking statements made inthis press release, you should keep in mind the risks noted and othercautionary statements throughout this press release. You should alsokeep in mind that all forward-looking statements are based onmanagement's existing beliefs about present and future events outsideof management's control and on assumptions that may prove to beincorrect. If one or more risks identified in this press release orother filing materializes, or any other underlying assumptions proveincorrect, our actual results may vary materially from thoseanticipated, estimated, projected, or intended.
For further information, please contact:
Wolfgang Rauball
CEO
EuroGas, Inc.
Telephone: (212) 618-1274