Energas Receives Right of Way for Parkway Project Pipeline.

OKLAHOMA CITY -- Energas Resources, Inc. (OTCBB:EGSRE) today announced that the Company has received the necessary right of way approval to build a pipeline that will bring to market the gas from the recently announced Parkway Project. "We are extremely pleased with the rate of progress on this field," commented George Shaw, President. "We already have one well producing oil, and now have the ability to move forward on the gas pipeline."

Work is expected to begin on the 3.7 mile steel pipeline in late summer and could be completed in 90 days. The Parkway Project includes approximately 3,000 acres and 18 wells. The wells have been shut in for varying lengths of time, ranging from 20 to 40 years, and will require some workover and hook-up. Initial production rates for the individual wells were reported to be in the range of 10-100 barrels of oil per day and up to 250 MCF of natural gas per day. "Our intention is to produce oil from all the wells, focusing first on those wells that can be brought into production soonest and with the lowest investment," continued Mr. Shaw. "By yearend, we hope to have begun the process of hooking up the wells to the new pipeline for gas production."

"We continue to move forward toward our goal of being able to fund all development costs out of internal cash flow by the end of 2005," said Mr. Shaw. "We currently have positive developments unfolding in our Kentucky fields that we believe will help us reach that important milestone."

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.