Energas Responds to the Double G Lawsuit.

OKLAHOMA CITY, Okla. -- Energas Resources, Inc. (OTCBB:EGSR) announces the following response regarding the numerous press releases which have been issued by Double G Energy relating to the commitment by Double G to participate in a Kentucky drilling venture with At Gas Gathering Systems, Inc., (AT Gas) TGC, Inc., (TGC). AT Gas and TGC are wholly owned subsidiaries of Energas Resources, Inc. which was not a party to any agreement with Double G. Energas' response is as follows:

There is no reason for Double G, a private company, to make public statements regarding the dispute especially because there is an arbitration clause in the agreement between the parties involved. The arbitration clause reads as follows:

19. Arbitration. In the event that a dispute arises between AT
        Gas, TGC and/or Double G, or any of their legal
        representatives, attorneys, accountants, agents or employees,
        said dispute arising out of, in connection with or as a result
        of the investment hereby made, Double G hereby expressly
        agrees that said dispute shall be resolved through arbitration
        rather than litigation. With respect to the arbitration of any
        dispute, the undersigned hereby acknowledge that:

        (a) Arbitration is final and binding on the parties;

        (b) The parties are waiving their right to seek remedies in
            court, including their right to jury trial;

        (c) Pre-arbitration discovery is generally more limited and
            different from court proceedings;

        (d) The arbitrator's award is not required to include factual
            findings or legal reasoning and any party's right to
            appeal or to seek modification of rulings by the
            arbitrator is strictly limited.

        Double G hereby agrees to submit the dispute to the American
        Arbitration Association in Oklahoma City, Oklahoma, within 10
        days after receiving a written request to do so from AT Gas or
        TGC. If Double G fails to submit the dispute to arbitration as
        requested, then the requesting party may commence an
        arbitration proceeding. Double G further agrees that the
        Federal Arbitration Act shall govern the proceeding and all
        issues raised by this Agreement to arbitrate. Each party
        agrees that it shall bear all of its respective attorney's
        fees, costs and expenses.

"In light of this arbitration clause, we are very disillusioned with the management of Double G Energy and their conduct," President George Shaw stated. Continuing, Mr. Shaw said, "The decision of Double G to take this drilling dispute public and to attack Energas Resources, Inc., which is an entity that is not party to the agreement, has caused considerable harm to Energas' market and shareholders. We have moved to commence an arbitration proceeding and I ask Double G to immediately cease its continued efforts to argue the dispute through press releases and to settle the matter through arbitration per the agreement."

Due to issues of growing incompatibility between the parties involved, and without admitting any fault, an offer was made by Mr. Shaw, on behalf of AT Gas and TGC, to refund to Double G Energy, Inc. the $835,678.49 that Double G had advanced to that point. The breakdown of the monies advanced is as follows: $670,000 for the turnkey drilling price of 20 wells at $33,500 per well, $100,000 nonrefundable for the drilling rights at $5,000 per well bore and $65,678.49 advanced for the gathering system improvements which Double G insisted upon. (Double G pledged $200,000 for gas gathering system improvements per the agreement, which AT Gas and TGC spent for these improvements, but which Double G refused to pay in full). Both Max Golden and Steve Gray, on behalf of Double G, verbally rejected the offer of a full refund but, rather, Mr. Golden demanded varying amounts that were originally over 6 times the amount advanced by Double G. Mr. Golden threatened to conduct a negative campaign against Energas Resources if a "buy out" settlement was not reached.

Further announcements will be forthcoming.