Energas Resources Reports 93% Revenue Growth and 63% Drop in Net Loss in First Quarter.

OKLAHOMA CITY, Okla. -- Energas Resources, Inc. (OTCBB:EGSRE) today announces highlights of the Company's first fiscal quarter ended April 30, 2005, as well as a review of progress made on several other fronts.

Highlights of the Fiscal First Quarter ended April 30, 2005 include:

--Total Revenue increased 93% to a record $257,881 from $133,571 year over year.

--Net Loss decreased 63% to $(149,906) from $(404,459) year over year.

--Cash Loss (Net Loss plus Depreciation, Depletion and Amortization) decreased 83% to $(52,244) from $(308,963) year over year.

--General and Administrative Expense decreased 24% to $216,673 from $284,047 year over year.

In addition, thus far in calendar year 2005, the Company has made major progress in several areas:

--The Company is now current in filing their financial statements and believes it has the staffing to stay current,

--The Company secured the Parkway Project, which currently includes 21 wells, has begun production from the first well, has received a workover permit for the second well and is in the process of permitting the balance of the wells,

--Energas secured a rig to drill the highly anticipated Eagle Ridge Prospect in Wyoming this month,

--The Company's motion to compel arbitration in the Double G lawsuit was granted by the United States District Court for the Northern District of Texas, Dallas Division.

"We continue to believe that 2005 will be a landmark year for Energas Resources," said George Shaw, president. "We should continue to see steady improvement in our production in Kentucky and are optimistic that we will have a favorable result from drilling Eagle Ridge in Wyoming. In addition, we are now current in our financial filings, and intend to stay current. Our goal remains to achieve positive cash flow sufficient to fund our development costs by the end of the year. Finally, we intend to launch our Investor Relations effort here in the foreseeable future."

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.