EI Eurogas International Inc

Eurogas International Inc. (CSE:EI) ("Eurogas International" or the
"Corporation") today reported its 2013 financial results. The Corporation's
audited financial statements, along with the accompanying management's
discussion and analysis have been filed on the System for Electronic Document
Analysis and Retrieval ("SEDAR") and may be viewed by interested parties under
the Corporation's profile at www.sedar.com or the Corporation's website at
www.eurogasinternational.com.


FINANCIAL RESULTS

During the year ended December 31, 2013, the Corporation incurred a net loss of
$2.1 million (2012 - $2.1 million), or a loss of approximately $0.07 per share
(2012 - $0.07 per share).


Farmout Agreement with DNO Tunisia AS

In June 2013, the Corporation and its joint venture partner, Atlas Petroleum
Exploration Worldwide Ltd. ("APEX" and, together with the Corporation, the
"Original Contractors") entered into negotiations to complete a farmout
agreement with DNO Tunisia AS, a subsidiary of DNO International ASA, in respect
of the Sfax Permit. The farmout agreement with DNO (the "DNO Agreement")
provides for DNO acquiring an 87.5% working interest in the Sfax Permit in
exchange for a US$6 million cash payment to the Original Contractors, and the
carrying of 100% of all future costs associated with the Sfax Permit, including
the associated drilling commitments. DNO will assume operatorship of the Sfax
Permit under the terms of the DNO Agreement. The DNO Agreement was completed on
January 17, 2014, whereupon the Corporation received US$2.7 million,
representing its 45% interest of the US$6.0 million cash payment received from
DNO.


Under the terms of the DNO Agreement, the Original Contractors will be entitled
to 12.5% of the profit oil or profit gas component of production from the Sfax
Permit, to a maximum of US$125 million (or 12.5% of the profit oil or profit gas
from the production of 75 million barrel of oil equivalents, whichever comes
first). Thereafter, the Original Contractors are entitled to 6.25% of the profit
oil or profit gas component of production from the Sfax Permit to a maximum of
an additional US$75 million (or 6.25% of the profit oil or profit gas component
from the production of an additional 45 million barrel of oil equivalents,
whichever comes first). The Corporation is entitled to 45% of any payments made
to the Original Contractors under these arrangements.


The Original Contractors have conceded a temporary deferral of 50% of their
entitlement to a share of the profit oil or profit gas component of production
from the Sfax Permit, as outlined above, until such time as DNO recovers $150
million of total incurred costs, including costs to be incurred by DNO
subsequent to completion of the DNO Agreement, from the cost oil or cost gas
component of production on the Sfax Permit.


In addition to their entitlement to a share of the profit oil or profit gas, the
DNO Agreement also provides the Original Contractors with entitlement to receive
20% of the cost oil or cost gas component of production from the Sfax Permit, to
a maximum of the lesser of 18% of the costs incurred by the Original Contractors
prior to completion of the DNO Agreement, or US$20 million.


Under the terms of the DNO Agreement, and with the approval of the Tunisian
authorities, DNO has contractually assumed full responsibility for completion of
the drilling obligations associated with the Sfax Permit, including any
compensatory payments that may arise as a result of non-compliance. In that
regard, DNO has provided a full guarantee to the Tunisian governmental
authorities.


FORWARD-LOOKING STATEMENTS

Certain information set forth in this document, including management's
assessment of the Corporation's future plans and operations, contains
forward-looking statements. Forward-looking statements are statements that are
predictive in nature, depend upon or refer to future events or conditions or
include words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions. By their nature, forward-looking statements
are subject to numerous risks and uncertainties, some of which are beyond the
Corporation's control, including risks of not being able to obtain or renew
permits and licenses, the inability to access sufficient capital from internal
and external sources, risks associated with foreign operations, the impact of
general economic conditions, currency fluctuations, exploration and development
risks, reliance on key personnel and management, risks relating to the
abandonment of operations, environmental risks, and competition from other
industry participants. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements. The Corporation's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, these forward-looking statements and accordingly, no assurance can
be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits the Corporation
will derive from them. The Corporation disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.


ABOUT EUROGAS INTERNATIONAL

Eurogas International Inc. is an independent oil and gas exploration company
listed on the Canadian Securities Exchange (www.cnsx.ca) under the symbol EI.


All documentation in respect of the Corporation may be viewed under the
Corporation's profile on SEDAR (www.sedar.com) or under the Corporation's
website at www.eurogasinternational.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Eurogas International Inc.
c/o Dundee Corporation
21st Floor
1 Adelaide Street East
Toronto, ON M5C 2V9


Jaffar Khan, President & CEO
Telephone: (403) 264-4985
Telefax: (403) 262-8299
Website: www.eurogasinternational.com

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