Energas Announces Kentucky Operations Update.

OKLAHOMA CITY -- Energas Resources, Inc. (OTCBB:EGSR) is pleased to announce an operations update for the Company's Kentucky project. Energas has now drilled 20 wells in the Bluegrass drilling program with no dry holes. Gathering system pipeline has been constructed to these 20 wells but they are currently shut in waiting on stimulation, which is scheduled to begin early December. The upsizing of three of the four different sections of gathering system pipeline is complete and the fourth section should be finished this week. Our field superintendent reports that the changes to date have increased field production to approximately 520 MCFD.

The arrival of the booster compressor station has encountered a delay but we are expecting to receive it by the first week of December. Energas plans to add this booster station to the center of the field to boost the flow of gas from the field to the main compressor station at the sales line.

The field superintendent reports the following unstimulated flow rates for these 8 wells tested in the Bluegrass drilling program: (these are stabilized flow rates as all wells were tested through a 3/8" orifice after initial pressures were blown down)

Ikerd #26           93 MCF natural gas per day
Ikerd #49           39 MCF
Ikerd #50           27 MCF
Ikerd #51           27 MCF
Ikerd #85           85 MCF
Ikerd #87           85 MCF
Ikerd #88           85 MCF
Ikerd #89           85 MCF

The testing for the remaining 12 Bluegrass wells has been postponed due to wet weather conditions in Kentucky at this time but results will be announced when received. Energas now has 9 new drilling permits in hand and 31 drilling permits are in process. Also, company land management has acquired 1,665 new acres to extend this Kentucky project area.

In Wyoming, the Bureau of Land Management (BLM) has denied the company's request to drill the Eagle Ridge Prospect at this time due to the winter environmental regulations in the area. The BLM has asked us to wait for a possible drilling window in 2005.

Safe Harbor Statement

When used in this press release, the words "intends," "believes," "anticipated" and "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. Factors that could cause or contribute to such differences include normal risks associated with oil and gas drilling activities. The primary risk lies in the drilling of dry holes or drilling and completing wells which, though productive, do not produce gas and/or oil in sufficient amounts to return the amounts expended and produce a profit. Hazards, such as unusual or unexpected formation pressures, downhole fires, blowouts, loss of circulation of drilling fluids and other conditions are involved in drilling and completing oil and gas wells and, if such hazards are encountered, completion of any well may be substantially delayed or prevented. In addition, adverse weather conditions can hinder or delay operations, as can shortages of equipment and materials or unavailability of drilling, completion, and/or work-over rigs. Even though a well is completed and is found to be productive, water and/or other substances may be encountered in the well, which may impair or prevent production or marketing of oil or gas from the well.