Energas Resources, Inc. Operational Update.

OKLAHOMA CITY -- Energas Resources, Inc. (OTCBB:EGSR) today issued the following operational update in an effort to provide information about the Company's current status:

Due to cost cutting efforts undertaken beginning in our previous fiscal quarter, we are now generating positive operating cash flow on a current basis. As well, the Company has four recent developments that have the potential to increase overall production.

1)  The recently announced well in the Whitley field continues to
    produce 65 MCFD of rich gas, equivalent to 78 MMBTUS, providing
    approximately $150,000 in additional cash flow per year at today's
    prices.
2)  We have installed a third booster compressor in the Pulaski field
    and are awaiting approval from the county inspector to turn it on.
3)  We have drilled out the plug and perforated the Ikerd #84 well in
    the Pulaski field and have gauged natural gas production of 25
    MCFD despite the presence of a lot of debris in the well. When the
    debris is removed, the Company will give an update if there is an
    increase in production.
4)  The Ainsworth #2 in Pittsburg, Oklahoma is approaching the payout
    point (October 2006) at which time the Company's share of the net
    revenue will increase from 4% to 26%, or approximately 50 MCFD. At
    today's natural gas prices, this would add approximately $100,000
    additional cash flow per year.

Furthermore, management is presently negotiating financing to drill a new well in both the Parkway Project and Whitley field in eastern Kentucky. The Parkway well should provide the electric log data that our consultants need to formulate the process to treat the wells in this project. In addition, management now believes the Whitley field could hold more potential than originally estimated due to recent discovery wells in the area. The Whitley well will test the Newman Limestone, Devonian Shale, Ordovician Stones River and the Knox formations. 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. 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.