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

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 entered
into 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 in which the
Corporation currently holds a 45% participating interest.


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."


Completion of the Agreement, which is subject to the satisfaction of certain
conditions including approval by the Tunisian authorities, contemplates the
acquisition by DNO Tunisia of an 87.5% participating interest in the Sfax Permit
in exchange for a US$6 million cash payment and the carrying of 100% of all
costs, including development and production related costs associated with the
Sfax Permit. DNO Tunisia will assume the obligations of operatorship. Following
completion of the Agreement, the Corporation will retain a 5.625% participating
interest in the Sfax Permit, subject to certain cumulative revenue thresholds.


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 National Stock 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 the Listings Disclosure Hall at www.cnsx.ca.


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