Eurogas International Inc. Announces Completion of the Farm-Out of Its Interest in the Sfax Permit and Ras El Besh Concession...

Eurogas International Inc. (CNSX:EI) ("Eurogas International" or the
"Corporation") announced today that, together with its joint venture partner,
Atlas Petroleum Exploration Worldwide Ltd. ("APEX"), the Corporation has
completed a farm-out agreement (the "Agreement") with DNO Tunisia AS ("DNO
Tunisia") with respect to the Sfax Offshore Exploration Permit and the Ras El
Besh Concession (together, the "Sfax Permit"), in the Republic of Tunisia. 


DNO Tunisia is a wholly-owned subsidiary of DNO International ASA, an
Oslo-listed, Middle East and Africa focused oil and gas company. Jaffar Khan,
President and CEO of Eurogas International, commented, "Eurogas is very pleased
to have established a farm-out arrangement with DNO Tunisia, an entity with the
technical knowledge and financial means to effectively pursue the significant
potential of the Sfax Permit."


In accordance with the Agreement, the Corporation has assigned 87.5% of its 45%
participating interest to DNO Tunisia in exchange for a US$2.7 million cash
payment, and the carrying of 100% of all costs by DNO Tunisia, including
development and production related costs associated with the Sfax Permit. The
Corporation has retained a 5.625% participating interest in the property,
subject to certain cumulative revenue thresholds and cost recovery provisions.
In addition, DNO has assumed operatorship.


FORWARD-LOOKING STATEMENTS

Certain information set forth in this document, including management's
assessment of the Corporation's future plans and operations, contains
forward-looking statements. Forward-looking statements are statements that are
predictive in nature, depend upon or refer to future events or conditions or
include words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions. By their nature, forward-looking statements
are subject to numerous risks and uncertainties, some of which are beyond the
Corporation's control, including risks of not being able to obtain or renew
permits and licenses, the inability to access sufficient capital from internal
and external sources, risks associated with foreign operations, the impact of
general economic conditions, currency fluctuations, exploration and development
risks, reliance on key personnel and management, risks relating to the
abandonment of operations, environmental risks, and competition from other
industry participants. 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 them. 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, except as required by law. 


ABOUT EUROGAS INTERNATIONAL

Eurogas International Inc. is an independent oil and gas exploration company
listed on the Canadian Securities Exchange under the symbol EI. 


All documentation in respect of the Corporation may be viewed under the
Corporation's profile on SEDAR (www.sedar.com) or under the Corporation's
website at www.eurogasinternational.com. For more information about Eurogas
International, please visit www.cnsx.ca.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Eurogas International Inc.
Jaffar Khan
President & CEO
[phone]
[phone] (FAX)
www.eurogasinternational.com