Energas Anticipates Positive Cash flow by Yearend.

OKLAHOMA CITY, Okla. -- Energas Resources, Inc. (OTCBB:EGSRE) today announces that the Company anticipates reaching positive cash flow before the end of 2005. "We expect to see revenue increase steadily and substantially in 2005, largely driven by the investments we made in 2004 to acquire and develop acreage," stated President George Shaw. "We anticipate a series of developments in the foreseeable future that will make sizeable contributions to production and revenue, thereby enabling Energas to reach a major inflection point where the Company is generating sufficient cash flow internally to fully fund our development efforts. While the exact timing is uncertain, we expect to reach that point before the end of this year."

Energas also announces that while the 10K filing will be further delayed, we do believe it will be filed before the stock is moved to the pink sheets. "We have worked very hard on this report and are very disappointed at this delayed filing," commented Shaw. "With our focus on building shareholder value, we have always been very conservative with staffing and compensation, including our own, but clearly we need to and intend to upgrade our capabilities in the accounting area. Our goal is to make future filings by the initial deadline."

Further announcements will be forthcoming.

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.