Energas Resources Announces Production from New Field.

OKLAHOMA CITY, Okla. -- Energas Resources, Inc. (OTCBB:EGSRE) today announced that the Company has produced 200 barrels of oil from the first well to be put into production in its recently announced field in eastern Kentucky, hereinafter referred to as The Parkway Project. "While it is still too early to give a stabilized production rate, our field superintendent reports an estimated rate of 15 barrels of oil and 100 mcf of gas per day at this time," stated George Shaw, President. "While we need a pipeline to get the gas to market, the oil produced by this or any of the other wells is immediately salable."

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 in this field have been reported to be in the range of 10-100 barrels of oil per day and up to 250 MCF of natural gas per day. "We have been working on securing the Parkway Project since sometime last year, but for competitive reasons were reluctant to make an announcement until we had the field secured," continued Mr. Shaw. "We believe this field will rapidly become one of Energas' crown jewels. 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. In addition, we plan to build a pipeline that will enable us to bring the gas production to market. The initial step for the pipeline is to secure the required right-of-way, which is in process."

"As mentioned in previous releases, we expect the efforts and investments we made in 2004 to result in increased revenue and positive cash flow before the end of 2005. While we are currently covering our operating expenses out of revenue, our short term goal is to reach the point where the Company is funding all development costs out of internal cash flow," said Mr. Shaw. "This is only one of a series of developments that we anticipate announcing in the foreseeable future that will have a significant positive impact on our operating results."

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.