Eurogas Corp. announces year end financial results.

CALGARY, Alberta--(BUSINESS WIRE)--March 27, 1996--EUROGAS CORP. (TSE:EUG) Eurogas Corp. announces its year end financial results.

The company changed its year-end to Dec. 31, from Oct. 31, accordingly, the financial statements reflect results of operations for the fourteen month period ended Dec. 31, 1995. The statements also include the results of operations for the six month period ended Dec. 31, 1995 for the Clearport Petroleums Ltd. properties which were acquired in 1995.

Oil and gas revenues for the quarter ended Dec. 31, 1995 were $692,761 compared to $64,952 in the corresponding period of the previous year. Oil and gas revenues for the fourteen months ended December 31, 1995 were $1,703,824. Cash flow for the fourteen month period was $418,566 ($0.01 per share) compared to a negative cash flow of $640,961 (-$0.04 per share) for the twelve month period ended October 31, 1994. Net loss for the year was $6,986,328 (-$0.24 per share) compared to a loss of $83,803 for the previous year.

The company elected to write down the value of its Canadian oil and gas assets by $5,700,000 after applying the ceiling test to its Canadian oil and gas reserves. The causes for the write-down were lower gas prices, reclassification of some reserves and certain exploration and development expenditures which failed to add new reserves.

OPERATIONS

In Russia, the company's 50 percent owned affiliate, Urengoil Inc., is conducting a production testing program to determine the productivity of the oil bearing sands in its Yaro-Yakinsk field in Western Siberia.

In Tunisia, the company is engaged in a 200 kilometer seismic program to confirm the integrity of a large prospect found in the company's Sud Nefta permit.

CONTACT: Eurogas Corp.

Julio Poscente or Keith Scrimger, 403/264-4985

403/262-8299 (FAX)