Eurogas Corporation Announces Financial Results.

CALGARY, Alberta--(BUSINESS WIRE)--Aug. 28, 1997--Eurogas (TSE:EUG.) EUROGAS CORPORATION announced today that total revenues for the six month period ended June 30, 1997 were $2,573,386, compared to $1,393,687 over the corresponding period last year. Net cash flow from operations amounted to $352,801 compared to a negative $73,032 for the corresponding period last year. Net loss for the period amounted to $65,199 compared to $481,032 for the comparable period last year. Production for the period was 364 BOED compared to 406 BOED for the comparable period last year. The improvement in earnings was attributable to higher interest income and lower G&A and Operating costs, while the decline in production resulted from the disposition of a property and to a lesser extent, natural decline in production.

Eurogas Corporation is a Toronto Stock Exchange listed company engaged in the development of a major oil and gas field in Russia, exploration for oil and gas reserves in Tunisia, examining the feasibility of a major gas storage project in Spain and the exploration for and production of oil and gas in Canada.

CONTACT: Eurogas Corporation

Julio Poscente, 403/264-4985

403/262-8299 (FAX)

or

Eurogas Corporation

Keith Scrimger, 403/264-4985

403/262-8299 (FAX)