UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.~~20549~~ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2009 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________to _______________ EUROGAS, INC. (Exact name of registrant as specified in its charter) 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2010

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________to _______________

EUROGAS, INC.
(Exact name of registrant as specified in its charter)

Utah	000-24781
(State or other jurisdiction	(Commission File No.)
of incorporation or organization)

14 Wall Street 22nd Floor New York, ~~NY 10005~~ NY10005(Address of principal executive offices, Zip Code)

(212) 618-1274 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act

Large accelerated filer [ ]		Accelerated filer [ ]
Non-accelerated filer [ ]	(Do not check if a smaller reporting	Smaller reporting company [X]
	company)

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes
[ ] No [X]

As of ~~September~~June 3025, ~~2009~~2010, the registrant had 322,~~220~~708,~~436~~719 shares of of common stock outstanding.

EUROGAS, INC.

TABLE OF CONTENTS

Page

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements	3
Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2010 and December 31, 2009	3
Condensed Consolidated Statements of Operations (Unaudited) as of March 31, 2010 and March 31, 2009	4
Condensed Consolidated Statements of Cash Flows (Unaudited) as of March 31, 2010	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2. Managements Discussion and Analysis of Financial Condition Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures about Market Risk	17
Item 4. Controls and Procedures	17
PART II - OTHER INFORMATION	18
Item 1. Legal Proceedings	18
Item 1A. Risk Factors	19
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3. Defaults Upon Senior Securities	19
Item 4.	19
Item 5. Other Information	19
Item 6. Exhibits	20
Signatures	26

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2009 and December 31, 2008	3
Condensed Consolidated Statements of Operations (Unaudited) as of September 30, 2009 and September 30, 2008	4
Condensed Consolidated Statements of Cash Flows (Unaudited) as of September 30, 2009	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2. Managements Discussion and Analysis of Financial Condition Results of Operations	13
Item 3. Quantitative and Qualitative Disclosures about Market Risk	16
Item 4. Controls and Procedures	16
PART II - OTHER INFORMATION	16
Item 1. Legal Proceedings	16
Item 2. Other Information	16
Item 3. Exhibits and Reports on Form 8-K	19
Signatures	25

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

EUROGAS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(The following statements have only been reviewed by EuroGas, Inc. management)

		September			December
		March 31, 2010			Dec. 31, 2009
		30,			31,
		2009			2008
ASSETS
Current Assets
Cash	$	~~1235~~9,498		$	~~1010~~2,520
Total Current Assets		1235			1010
Other Receivables	$	3,702,896		$	3,348,567
Property and Equipment - full cost method
TOTAL Current Assets	$	3,712,394		$	3,351,087
Talc mineral properties and mining equipment		-			-
Mineral properties not subject to amortization	$	2,050,000		$	2,050,000
Oil and gas properties not subject to amortization		-			-
Furniture and office equipment				$	3,983
Furniture and office equipment		3,983			4,267
Total Property and Equipment	$	2,050,000		$	2,053,983
Total Property and Equipment
Accumulated depletion, depreciation and amortization				$	(3,983	)
Less: Accumulated depletion, depreciation and amortization		(213	)		(284	)
Net Property and Equipment	$	2,050,000		$	2,050,000
Net Property and Equipment		3,770			3,983
Investment, at cost	$	15,641,001		$	15,631,001
Investment in Securities		523,875			217,880
Total Assets	$	21,403,395		$	21,032,088
Other Receivables		1,603,756			1,324,388
Investment, at cost		16,656,078			9,650,000
Total Assets	$	18,788,714		$	11,197,261
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities
Accrued liabilities	$	98,~~635~~282,~~824~~739		$	49,~~935~~550,~~600~~007
Notes payable to related parties	$	~~949~~4,~~972~~655,925		$	~~882~~2,~~684~~721,566
Shareholders Loan	$	13,~~753~~050,~~250~~731		$	-2,982,851
Total Current Liablities	$	1215,~~339~~989,~~046~~395		$	515,~~818~~254,~~284~~424
Stockholders' Capital/Deficiency
Preferred stock, $0.001 par value; 3,661,968 shares authorized; 260 shares outstanding; liquidation preference:$ 260,000		350,479			350,479
Preferred stock, $0.001 par value; 3,661,968 shares authorized; 260 shares outstanding; liquidation preference:$260,000	$	350,479		$	350,479
Common stock, $0.001 par value; 325,000,000 shares authorized; 322,220,436 303,220,436 shares issued, respectively	$	322,220		$	~~303~~322,220
Additional paid-in capital	$	~~158~~164,~~051~~806,~~186~~302		$	~~156~~164,~~341~~806,~~186~~302
Accumulated deficit	$	(~~152~~160,~~272~~063,~~855~~639	)	$	(~~151~~159,~~614~~699,~~546~~975	)
Treasury stock, at cost; 5,028 shares	$	(1,362	)	$	(1,362	)
Total Stockholders' Capital/Deficiency	$	65,~~449~~414,~~668~~000		$	5,~~378~~777,~~977~~664
Total Liabilities and Stockholders' Capital/Deficiency	$	1821,~~788~~403,~~714~~395		$	1121,~~197~~032,~~261~~088

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~ 3

EUROGAS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(The following statements have only been reviewed by EuroGas, Inc. management)

		For the Three Months						For the Nine Months
		For the Three Months Ended
		Ended						Ended
		March 31, 2010			March 31, 2009
		September 30,						September 30,
Oil and Gas Sales		-			-
		2009			2008			2009			2008
		-			-
Oil and Gas Sales	$	-		$	-		$	-		$	-
Depreciation, depletion and amortization				$	71
Costs and Operating Expenses
General and administrative	$	215,184		$	254,892
Depreciation		71			71			213			213
Total Costs and Operating Expenses	$	215,184		$	254,963
Impairment of mineral interests and equipment		-			-			-			-
Other Income (Expenses)
General and administrative		354,765			524,845			877,053			1,405508
Interest Income	$	35,600
Total Costs and Operating Expenses		(354,836	)		(524,916	)		(877,266	)		(1,405721	)
Other Income
Other Income (Expenses)
Interest expense	$	(180,180	)	$	(22,067	)
Interest expense		(23,154	)		(21,004	)		( 87,038	)		(66,962	)
Income from Accrued Liability/Tax/settlement reduction
Income from reduction of accrued liabilities/settlement obligations		-						-			7,428,282
Gain/Loss on sale of securities available for sale				$	41,123
Unrealized Gain ( Loss) on sale of securities		(16764	)		(1,022,604	)		305,995			456,819
Total Other Income (Expense)	$	(144,580	)	$	19,056
Net Other Income ( Expenses)		(39,918	)		(1,043,608	)		218,957			7,818,139
Net Profit/Loss	$	(359,764	)	$	(235,907	)
Profit / Loss Before Accounting Change		(394,754	)		(1,568,524	)		(658,309	)		6,412,418
Preferred Dividends	$	(3,900	)	$	(3,900	)
Preferred Dividends		(3,900	)		(3,900	)		(11,700	)		(11,700	)
Net Profit/Loss	$	(363,664	)	$	(239,807	)
Profit/Loss Applicable to Common Shares	$	(398,654	)	$	(1,572,424	)	$	(670,009	)	$	6,400,718
Basic and Diluted Profit/Loss Per Common Share	$	(0.001	)	$	(0.0008	)
Basic and Diluted Profit/Loss Per
Weighted Average Number of Common Shares Used in Per Share Calculation		322,220,436			303,220,436
Common Share
Net Profit/Loss	$	(398,654	)		(1,572,424	)	$	(670,009	)	$	6,400,718
Basic and Diluted Weighted-Average
Common		(0,001	)		( 0.005	)		(0,002	)		0,021
Shares Outstanding		322,220,436			301,555,494			322,220,436			301,555,494

The accompanying notes are an integral part of these condensed consolidated financial statements.

EUROGAS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(The following statements have only been reviewed by EuroGas, Inc. management)

		For the Nine Months
		Three Months Ended
		Ended
		March 31, 2010
		September 30, 2009
Cash Flows From Operating Activities
Net Profit /(Loss)	$	(~~658~~363,~~309~~664	)
Adjustments to reconcile net loss to cash used by operating activities:
Depreciation		~~213~~
Gain on sale of property and equipment		-
Foreign exchange net (gain) loss		-
Cumulative effect of accounting change		-
Impairment of mineral interests and equipment		-
Unrealized Gain on sale of securities		~~(305,995~~	)
Warrants issued for settlement cost		-
Changes in operating assets and liabilities:
Other receivables / investment	$	(5364,~~556,446~~329	)
Current liabilities		6,520,762
Accrued liabilities	$	734,971
Net Cash Used in Operating Activities	$	~~225~~6,978
Cash Flows From Investing Activities		-
Purchases of mineral interests, property and equipment		-
Proceeds from sale of interest in gas property and equipment		-
Proceeds from sale of investment in fixed-maturity securities		-
Proceeds from sale of securities available for sale		-
Purchase of securities available for sale		-
Net Cash Provided by (Used in) Investing Activities
Net Cash Provided by (Used in) Investing Activities		-
Cash Flows From Financing Activities
Proceeds from issuance of common stock
Shareholders Loan
Proceeds from sale of treasury stock
Proceeds of issuance of notes payable to related parties
Acquisition of treasury stock		-
Net Cash Provided by (Used in) Financing Activities
Effect of Exchange Rate Changes on Cash		-
Net Increase (Decrease) in Cash	$	~~225~~6,978
Cash at Beginning of Period	$	~~1010~~2,520
Cash at End of Period	$	~~1235~~9,498

The accompanying notes are an integral part of these condensed consolidated financial statements.

EUROGAS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~Condensed~~Nature ~~Interim~~of ~~Financial~~Operations ~~Statements~~EuroGas -is ~~The accompanying~~primarily ~~unaudited~~engaged ~~condensed~~in ~~consolidated financial statements include~~ the ~~accounts~~acquisition of ~~EuroGas,~~rights ~~Inc.~~to ~~and~~explore ~~its~~for ~~subsidiaries~~and ~~("EuroGas"~~exploit ornatural ~~the~~gas, ~~"Company").~~unconventional ~~These~~gas, ~~financial~~coal ~~statements~~bed ~~are~~methane ~~condensed and~~gas, ~~therefore,~~crude dooil ~~not~~and ~~include~~minerals. ~~all disclosures~~We ~~normally~~have ~~required~~acquired byinterests ~~accounting principles generally accepted~~ in ~~the~~ ~~United~~several ~~States~~large ofexploration ~~America.~~concessions Inand ~~particular,~~are ~~EuroGas' significant accounting principles were presented as Note 1 to the Consolidated Financial Statements~~ in ~~that~~ ~~Report.~~various Instages ~~the opinion~~ of ~~management, all adjustments necessary for a fair~~identifying ~~presentation~~industry ~~have~~partners, ~~been~~farming ~~included~~out inexploration ~~the~~rights, ~~accompanying~~undertaking ~~condensed consolidated~~exploration ~~financial~~drilling, ~~statements~~ and ~~consist~~seeking ofto ~~only~~develop ~~normal recurring adjustments~~production. ~~The results~~Unless ofotherwise ~~operations~~indicated, ~~presented~~all dollar amounts in ~~the~~this ~~accompanying~~Form ~~condensed~~10-Q ~~consolidated financial statements~~ are ~~not~~reflected ~~necessarily~~in ~~indicative~~United ofStates ~~the results that may be expected for the full year ending December 31, 2009~~dollars.

Business Condition - EuroGas has accumulated a deficit of ($ ~~152~~160,~~272~~063,~~855~~639) through ~~September~~March 3031, ~~2009~~2010. At ~~September~~March 3031, ~~2009~~2010, the Company had a working capital of $(12,~~337~~277,~~811~~001) and a capital of $ 65,~~449~~414,~~668~~000. ~~These~~ These conditions raise substantial doubt regarding the Company's ability to ~~continue~~ continue as a going concern. Realization of the investment in properties and equipment is dependent upon management obtaining financing for exploration, development and production of its properties. In addition, if exploration or evaluation of property and equipment is unsuccessful, all or a portion of the ~~remaining~~ remaining recorded amount of those properties will be recognized as impairment losses. Payment of current liabilities will require substantial additional financing. Management of the Company plans to finance operations, explore and develop its properties and pay its liabilities through borrowing, through sale of interests in its properties, through advances received against future talc sales and through the issuance of additional equity securities. Although realization of any of these planned transactions is not assured, management of the Company still was able to raise new capital and acquire new assets through a ~~combination~~ combination of cash and the issuance of additional equity securities after the Chapter 7 bankruptcy proceedings were formally terminated by the Bankruptcy Court of Utah in February 2007. At the time of the formal termination of the Chapter 7 bankruptcy proceedings the Company had ~~appr~~approx. 200.,000.,000 shares ~~outstanding~~ outstanding without any assets, while until ~~September~~March 3031, ~~2009~~2010 the Company was able to accumulate new assets by issuing ~~appr~~approx. 120.,000.,000 new shares bringing ~~the~~ the total number of outstanding shares to 322,~~220~~708,719.~~436.~~

Principles of Consolidation - The accompanying ~~consolidated~~ consolidated financial statements include the accounts of EuroGas, Inc. ~~and~~The investment for ~~EuroGas'~~the ~~share~~interest ofin ~~properties~~McCallan was accounted at cost based upon the ownership percentage that was held ~~through~~by ~~joint~~EuroGas ~~ventures~~during that period.

~~Stock-Based~~Use ~~Compensation~~of Estimates - AtThe ~~September~~preparation ~~30,~~of ~~2009,~~financial statements in conformity with accounting principles generally accepted in the ~~Company~~United ~~had~~States noof America ~~options~~requires ~~outstanding~~management to make estimates and assumptions that ~~had~~affect ~~been~~the amounts ~~previously~~reported ~~granted~~in tothe consolidated financial statements and accompanying ~~employees~~notes. The critical accounting policies that require management's most significant estimates and ~~consultants~~judgments ininclude ~~connection~~the ~~with~~assessment ~~employment~~of ~~contracts~~recoverability of property and equipment. The actual results experienced by the Company may differ materially from management's estimates.

~~Reclassifications~~Note -2 ~~Certain~~Other ~~reclassifications have been made to the accompanying December 31, 2008 and September 30, 2008 financial statements to conform to the current period presentation.~~ Receivables

~~Cumulative~~Other ~~Effect~~Receivables ofreflect ~~Accounting~~a ~~Change~~short –term ~~The Company~~loan ~~adopted~~by ~~SFAS~~EuroGas, NoInc. ~~143,~~to McCallan ~~Accounting~~ for ~~Asset~~working ~~Retirement Obligations,~~capital ~~effectively~~and onadvances ~~January~~to 1,EuroGas ~~2003~~Polska Sp.z.o.o. Inand EuroGas ~~accordance~~GmbH with ~~the transition~~a ~~provisions~~balance of ~~SFAS~~US ~~No. 143~~$3,249,986 ~~the~~at ~~Company~~March ~~recorded~~31, ~~asset~~2010 ~~retirement obligation~~including ~~liabilities of~~ $ 035,600 interest.

~~EUROGAS~~Other Receivables reflect a short term loan by EuroGas, ~~INC~~Inc. ~~NOTES~~to Rozmin TOs.r.o. ~~CONDENSED~~for ~~CONSOLIDATED~~working ~~FINANCIAL~~capital ~~STATEMENTS~~with ~~(UNAUDITED)~~a balance of $432,860 at March 31, 2010.

~~NOTE~~Note 23 -Property ~~INVESTMENT~~and ~~IN SECURITIES~~ Equipment

~~The~~Rio ~~Company's~~Plata ~~primary~~“Sandwich” investment in securities consists of 419,100 shares of Enterra Energy Ltd. The Enterra shares were held as collateral by Oxbridge Limited under a claim, as discussed in Note 3. On March 12, 2008 the Company and Oxbridge have entered into a settlement agreement and under the terms and conditions of the settlement agreement Oxbridge has agreed to release the Enterra Shares which were held as collateral by Oxbridge under a claim against the Company. For further details of the settlement with Oxbridge see the Company’s 2008 Q1. At June 30, 2003, the Company changed its expectation of realizing proceeds from sale of the Enterra shares to more than one year and reclassified the investment in the Enterra shares as a long-term asset. The Company's investments in equity securities, including the Enterra shares, are accounted for as available for sale, as defined by SFAS No. 115, as they have readily determinable fair values and are not restricted other than in connection with being pledged as collateral. Accordingly, the investments in securities available for sale are carried at market value with unrealized gains and losses included in accumulated other comprehensive income (loss). The cost of securities sold is determined by the average-cost method. Properties

		September		December
		30, 2009		31, 2008
Cost	$	412,968	$	412,968
Gross unrealized gain		110,907		(195,088	)
Estimated Fair Value	$	523,875	$	217,880
Presented in the accompanying balance sheets as follows:
Investment in securities	$	523,875		217,880

On January 10, 2008, the company entered into a letter of intent with Rio Plata Exploration and Mining Inc. pursuant to which the company was granted an option to acquire a 60% interest in and to 56 mining claims, covering approximately 2,000 acres (809 ha.) and known as the Tombstone “Sandwich” Property, a gold and silver base metals property, located in the Tombstone Mining District of Arizona. On April 2, 2009, a formal option agreement having retroactive effect to January, 2008, was subsequently entered into between Rio Plata and the company covering this acquisition. Under the terms of this agreement, the company earned the 60% interest by the payment of $250,000 and the issuance of 12,000,000 restricted common shares.

~~During the three months ended September 30, 2009, the Company made no sales or purchases of investment securities.~~ 6

~~Note~~On April 2, 2009, the registrant entered into another option agreement with Rio Plata to acquire the remaining 40% interest in the Tombstone “Sandwich” claims, plus a $3,000 ~~Other~~reclamation ~~Receivables~~bond, in exchange for the payment of $5,500 and the issuance of 8,000,000 restricted common shares.

~~Other~~Although ~~Receivables~~5,500,000 ~~reflect~~shares aof ~~short~~common ~~term~~stock ~~loan~~are bynot ~~EuroGas,Inc.~~allotted toyet, Mcboth ~~Callan~~parties ~~OIL~~agreed, &that ~~GAS~~the ~~(UK)~~company ~~Limited~~owns ~~for~~all ~~working~~right, ~~capital~~title and ~~advances~~a to100% ~~EuroGas~~interest ~~Polska~~in ~~Sp.z.o.o.~~the ~~and~~Tombstone ~~EuroGas~~“Sandwich” ~~GmbH~~claims, ~~with~~which ahave ~~balance~~been ofrecorded at the US Government $BLM ~~1,603,756~~(Bureau asof atLand Management) in the company’s name. The claims ~~September~~were ~~30,~~recorded ~~2009~~at cost with a total amount of $2,050,000.

Note 4 Investment at cost

~~For the participations in Mc Callan OIL & GAS (UK) LIMITED, Rio Plata Properties ,~~ Tombstone Exploration Corporation~~, EuroGas, Inc. has invested by cash and by issuance of common shares of EuroGas, Inc. a total balnce of US $ 16,656,078 as at September 30, 2009.~~

2On ~~Million~~June ~~Shares~~30, of2008 the company signed a subscription agreement in a private placement transaction with Tombstone Exploration Corporation ~~are~~for the ~~pledged~~sale asof a2,000,000 ~~security~~shares of common stock for ~~outstanding~~$0.20 ~~salaries~~per share with a total amount of $400,000. Attached was a three year warrant for the ~~former~~purchase ~~CFO~~of an additional 1,000,000 shares of common stock at $0.40 per share. With respect to the ~~Company~~strategic investment and the additional private placement in 2010 the Tombstone shares were recorded at cost with an amount of $400,000.

~~EUROGAS,~~In ~~INC~~April 2010 the company signed a subscription agreement in a private placement transaction for 25 Million shares of common stock for $0.04 per ~~NOTES~~share TOwith ~~CONDENSED~~an ~~CONSOLIDATED~~attached ~~FINANCIAL~~warrant ~~STATEMENTS~~for ~~(UNAUDITED)~~additional 25 million shares of common stock for $0.10 per share. EuroGas has the right to nominate two members of the board of directors, including the position of the Chief Executive Officer.

TEI Open Pit Mine

Effective April 2, 2009, the company entered into an assignment agreement with Henry & Munroe, LLC, pursuant to which Henry & Munroe assigned to the company all rights and obligations in and to an option to purchase real estate agreement dated March 3, 2009 between Henry & Munroe (as Optionee) and Dale Turner, Tombstone Development Co. and Tombstone Hills LLC (as Optionors). This agreement covers approximately 485 acres (196 ha.) in three parcels of land, and is known as the TEI Open Pit Mine located in the Tombstone Mining District of southeast Arizona. The consideration paid to Henry & Munro consisted of $10,000 and the issuance of 2,000,000 restricted common shares of the company.

In the event the company wishes to exercise the option to acquire the TEI Open Pit Mine, it must pay the Optionors $600,000 for Parcel A of the lands (approximately 200 acres), $400,000 for Parcel B of the lands (approximately 150 acres), and $540,000 for Parcel C of the lands (approximately 135 acres).

The interest in the TEI Open Pit Mine was recorded with $240,000 as investment at cost.

McCallan

McCallan is a private UK Company previously owned by Regent Ventures Ltd. Canada as to 45 % and by Mr. Hans D. Dietmann as to 55 %. McCallan's main assets are its wholly-owned subsidiaries EuroGas Polska sp.zo.o ("EuroGas Polska"), a Polish company, and Vienna, Austria based EuroGas GmbH (“EuroGas Austria”).

Regent Ventures Ltd.

On May 1, 2008 the company signed a Share Option Agreement with Regent Ventures Ltd. (Regent), a Canadian public company, to acquire Regent's 45% interest in McCallan. Under the terms and conditions of the agreement, Regent has granted EuroGas the Option to purchase Regent's entire interest in McCallan in exchange for the issuance of 10 million common shares of EuroGas and a cash-payment of CDN $3 million payable in three stages. The company has issued the 10 Million restricted common shares of Euro Gas during 2008.

The date of the final cash-payment of 3 Million Can $was postponed by 2 amendment agreements until March 31, 2010. For the first amendment the company issued a signing bonus of 2 Million shares of restricted common stock of EuroGas in 2009 and for the second amendment 1 Million shares of non-restricted common stock of EuroGas have to be issued.

During April 2010, the Company entered into a further amending agreement with Regent, where Regent has extended the due date of the $3,000,000 cash payments to June 30, 2010. In consideration for the extension, the company agreed to issue an additional 1,000,000 shares to Regent, free of restriction from trading. In addition Regent exercised the option to elect to receive up to $1,500,000 of the cash payment due on closing in shares in the capital of the company at the lower of the then market price or $0.25 per share. Regent still may elect to convert also on the balance of the cash payment at the then market price of the shares.

Hans D. Dietmann

On May 28, 2008 the company entered into an agreement to acquire a 30% interest in McCallan from Mr. Hans D. Dietmann, McCallan's controlling shareholder and Managing Director, and secured an option to purchase an additional 25% interest in McCallan from Mr. Dietmann. The company purchased Mr. Dietmann's 30% interest by issuing 20,000,000 restricted EuroGas, Inc. common shares, 1 Million preferred shares of the company and by cash payments totalling US-$750,000.

On April 1, 2010 the company and Mr. Dietman entered into a final agreement enabling the company to purchase the remaining 25 % interest in McCallan for issuing 15 Million restricted common shares of the company as per the terms & conditions of the May 28, 2008 agreement. Mr. Dietmann relinquished the rights to the 1 Million preferred shares of the company.

The interest in McCallan was recorded at cost with an amount of $15,001,000 at March 31, 2010.

Rozmin s.r.o.

On April 17, 2001, EuroGas entered into an agreement to purchase 57% interest in Rozmin s.r.o. from Belmont Resources, Inc. ("Belmont"), in exchange for EuroGas issuing 12,000,000 common shares, paying Belmont $100,000 in advance royalties, and modifying the exercise price of existing stock options.

EuroGas further agreed to issue an additional 1,000,000 common shares for each $0.05 decrease in the ten-day average OTC Bulletin Board quoted trading price of the Company's common shares below $0.30 per share through April 17, 2002. During 2002 EuroGas issued 3,830,000 common shares to Belmont under the stock price guarantee. In connection with the purchase by EuroGas, Rozmin s.r.o. granted an overriding royalty to Belmont of two percent of gross revenues from any talc sold.

Additionally, EuroGas agreed to issue additional common shares to Belmont if Belmont did not realize approximately $1,218,000 from the resale of the original 12,000,000 common shares by April 17, 2002, and provide notice of such deficiency to EuroGas, to compensate Belmont for the shortfall based on the ten-day average trading price on the date of the notice of shortfall from Belmont.

In January 2005 the Company’s subsidiary Rozmin s.r.o. was notified that the concession regarding the talc deposit had been cancelled by the Slovakian Government for unspecified and dubious reasons. At this point therefore no further concession is held by Rozmin. This does not nullify the obligation to Belmont Resources as to the balance of the purchase price. The Company and Belmont, however, entered into an agreement for Belmont not to pursue legal proceedings against the Company as long as the situation in respect to Rozmin has not been cleared.

The purchase price of the 57 % interest in Rozmin is recorded with $1.

NOTE 5 – Accrued Liabilities

Because Eurogas was unable to finance the settlement agreement the Bankruptcy court in HoustonTexas has added a monetary amount of $113 million to the default judgment, against EuroGas, Inc. and certain parties, that was obtained by the Trustee for the McKenzie matter. On October 20, an Order for Relief was signed by the US Bankruptcy Court in Salt Lake City, Utah. This has put the Company into receivership at this point. There are ongoing negotiations by the third party to purchase the judgment against EuroGas presently held by the Bankruptcy Trustee in the McKenzie matter, who forced EuroGas into involuntary Bankruptcy. The plan is to purchase the judgment held by the McKenzie trustee by a friendly third party and then request the US Bankruptcy Court in Salt Lake City, Utah to convert the present chapter 7 bankruptcy to a voluntary chapter 11 reorganization. . In October of 2005, the Bankruptcy Trustee was asked to sell the Polish assets, GlobeGas B.V., Pol-Tex Methane, Sp. z.o.o., McKenzie Methane Jastrzebie Sp. z.o.o., to a third party. The Trustee eventually put the group of Polish companies up for an auction which was held on March 28, 2006, after a certain amount of legal wrangling by some of the creditors. The assets were sold at the auction and the Bankruptcy Trustee received approximately $ 800,000 for the assets, which he distributed after costs to certain creditors of the company in November 2006. On or about February 20th 2007 a final report was issued by the Bankruptcy Trustee stating that the Eurogas Bankruptcy case had been formally closed by order of the Bankruptcy Judge, The honorable Judge Thurman, and that the Trustee was no longer involved in the case. The following order was issued by the Court in Salt Lake City “Upon consideration of the foregoing report and motion for discharge of the Trustee, The Court concluded that the Trustee has completed the administration of the estate (of EuroGas, Inc.) it is ORDERED: 1. That the Trustee be and is hereby discharged, and the surety on the bond are relieved of further liability in this case: 2. .That the case be and is hereby closed.” This information was posted on “Pacer” the official document organization for the US Court system The Company has recently received a revived settlement negotiation with the Bankruptcy Trustee for the McKenzie claim in Houston Texas. The Company will report to the shareholders of the Company as to the progress of these negotiations regarding the settlement. On August 22, 2007 the Judge in the Bankruptcy case in Texas, The Honorable Judge Brown, signed an order allowing sale of Judgment ~~against~~ EuroGas, ~~Inc. and others. On September 24, the Trustee, Mr. Steve Smith, of the Bankruptcy court for the Mckenzie claim in Houston~~ Texas The Honorable Judge Brown presiding, transferred and assigned and conveyed the Judgment held by him to a friendly third party, to settle the Judgment and it was sold as per instructions of the Bankruptcy Court in Texas, Corp.

EuroGas, Inc. has been notified by Texas ~~Euro~~EuroGas ~~Gas~~ Corp., a Houston, Texas based private company (The “independent party”), that it has purchased the Judgment against EuroGas, Inc. and others in the original ~~amount~~ amount of $113 Million, plus accrued interest thereon. The ~~Judgement~~Judgment against the Company et. al. was originally obtained in the South Texas Bankruptcy Court by the Bankruptcy Trustee of the McKenzie estate, Trustee Steve Smith of Houston, Texas in 2004. The independent party has ~~now~~ received an assignment of the Judgment from Trustee Smith on September 24, 2007 after the Honorable Judge Brown of the South Texas Bankruptcy Court approved the sale of the Judgment on August 22, 2007 by ~~Court~~ Court Order. Trustee Smith had forced EuroGas, Inc. into involuntary bankruptcy (Chapter 7) in the fall of 2004 and EuroGas, Inc.’s remaining assets were sold at public auction in March 2006 in Salt Lake City, Utah. The involuntary bankruptcy of EuroGas, Inc. was closed and terminated by Court Order of the Utah Bankruptcy Court in February 2007.

The independent party, Texas EuroGas Corp., paid US-$1.6 million US cash to the McKenzie Bankruptcy Trustee as specified and approved by the August 22, 2007, Court Order of the South Texas Bankruptcy Court. The ~~independent party has committed to further discussion to~~ ~~provide working capital and assets for EuroGas, Inc. in exchange for equity in the Company. The~~ independent party has also informed the Company that it will not seek legal redress towards the Company and others after having obtained the Judgment and is is prepared to negotiate with the Company and others to redeem the Judgment. The Company and the independent party intend to enter into a final settlement and to combine its efforts to start legal proceedings against the Government of the SlovakRepublic and certain Slovak individuals and enterprises in connection with the illegal termination of the Company’s mining interest in the SlovakRepublic.

Texas EuroGas Corporation, a Texas corporation, was established in 2007 by Mr. David Sacks, a Houston solicitor, acting as Trustee on behalf of Mr Hans D. Dietmann, a non-affiliated shareholder of the Company.

The entire financing of the purchase of the ~~Judgement~~Judgment by Texas EuroGas Corp. from the Bankruptcy Trustee Steve Smith, as well as all the costs involved related to the purchase of the ~~judgement~~judgment by Texas EuroGas Corporation, was entirely financed by Mr. Dietmann, who provided ~~appr~~approx. $ 800.,000 cash, and by by the CEO of EuroGas Inc., Mr. Wolfgang Rauball, who provided ~~appr~~approx. $ 1.,125.,000 cash.

Although Mr. Dietmann had indicated in writing to settle the ~~judgement~~Judgment issue with the Company, the Trustee for Mr. Dietmann, Mr David Sacks, still has not transferred ownership of Texas EuroGas Corp. into Mr. Dietmann’s name, although agreed to in writing by Mr. Sacks in summer 2008, as Mr. Sacks was asking for further financial renumeration. Therefore the ~~judgement~~ Judgment could not have been settled with EuroGas Inc. yet.

In order to solve this problem Mr. Dietmann and Mr. Wolfgang Rauball have entered into an agreement with EuroGas Inc. ~~and~~in October 2009 and have transferred all their respective rights of ownership and their respective receivables in connection with their financing of Texas EuroGas Corporation and the purchase of the ~~judgment~~Judgment from Trustee Smith, incl. accrued interest thereon, to the Company.

In addition to the financing of the purchase of the $ 113 million ~~judgment~~Judgment from Trustee Smith in September 2007 by the Company’s CEO Mr. Wolfgang Rauball and Mr. Dietmann, Trustee Smith ~~in early 2009~~ had obtained a second ~~judgement~~ Judgment against the ~~Company~~company in early 2009 in a different case in the amount of ~~appr~~approx. $ 125.,000 plus accrued interest and had threatened to start again legal procedures to reopen ~~Bankruptcy~~ bankruptcy proceedings under Chapter 7 against the Company. On April 30, 2009 Mr. Dietmann has also bought this ~~judgement~~Judgment from Trustee Smith and has also assigned his receivable for this second ~~judgement~~judgment to the Company.

~~NOTE~~For 6the —transfer ~~NOTES~~of ~~PAYABLE~~the TOrights ~~RELATED~~of ~~PARTIES~~ownership and the respective receivables, including accrued interest and costs since 2007, the company agreed to reimburse Mr. Dietmann $950,000 and Mr. Wolfgang Rauball $1,600,000. The loan accounts of Mr. Dietmann and Mr. Rauball were credited with these amounts in October 2009.

Notes payable to related parties are considered current and consist of:		September		December
		30,		31,
		2009		2008
Loans from a key employee, due in 2007, with
	$	882,684	$	861,157
Interest at 10%, unsecured.		44,134		21,527
Total Notes Payable to Related Parties		926,818		882,684

Mr. Wolfgang Rauball and Dr. Reinhard Rauball have paid a lump sum of $100,000 each in favor of the company to release both gentlemen from any claims under the Judgment to be held by the company.

~~NOTE~~The 7formal —transfer ~~Shareholders~~of ~~Loan~~the ownership of EuroGas Texas Ltd. to the company has not taken place as of March 31, 2010. The final payment for Mr.Sacks’services is shown as an accrued liability in favour of Mr. Sacks with an estimated amount of $300,000. Mr. Sacks had already received $300,000 cash in May 2008 from Mr. Dietmann for his services in 2007/ 2008.

A principal non- affiliated shareholder of EuroGas, has paid miscellaneous business expenses on behalf of EuroGas. The resulting payable is presented in the accompanying financial statements as Shareholders Loan of $ 1,753,250 as at September 30, 2009. The loan has to be repaid by June 30, 2010. On October 7, 2009 the shareholder gave notice to EuroGas Inc. to convert the entire loan into common stock of EuroGas at the average price traded on the US Pink Sheet for 90 Days prior to the conversion request.9

Salaries

The agreed salaries for the directors of the company have not been paid for several years due to the bankruptcy proceedings and the general financial situation of the company and the financial commitments by the company to acquire and support its various assets after the release from chapter 7 bankruptcy proceedings in 2007. At March 31, 2010 a total amount of $1,066,688 is recorded as accrued liability for outstanding salaries of Mr. Hank Blankenstein, Mr. Harald Schmidt and Mr. Wolfgang Rauball.

Rozmin

The company recorded an accrued liability of $1,500,000 at March 31, 2010 under the purchase agreement dated April 17, 2001 to purchase 57 % of Rozmin s.r.o. from Belmont Resources Ltd.

Rio Plata

5,500,000 common shares of the company are not allotted to Rio Plata at March 31, 2010 and were recorded as an accrued liability with an amount of $495,000.

Regent Ventures Ltd.

The signing bonus of 1,000,000 common shares of the company to extend the final deadline under the option agreement to purchase the 45 % interest in McCallan is not allotted yet in favor of Regent Ventures as at March 31, 2010 and is recorded as an accrued liability with an amount of $171,000 as well as the outstanding final payment of $3,000,000.

NOTE 6 — Shareholders Loan

Mr. Hans D. Dietmann, a non-affiliated shareholder of EuroGas, has provided miscellaneous business expenses on behalf of EuroGas. The resulting payable is presented in the accompanying financial statements as part of the Shareholders Loan of $1,753,500. On October 7, 2009 the shareholder gave notice to EuroGas Inc. to convert the entire loan due to the loan agreement into common stock of EuroGas at the average price traded on the US Pink Sheet for 90 Days prior to the conversion request. In June 2010 Mr. Dietmann cancelled the conversion request, because EuroGas failed to issue the shares within a period of over 8 month. The entire loan is now due for repayment on September 30, 2010 with an interest rate of 10 % p.a..

On October 13, 2009 the Company entered into a loan and option agreement with Mr. and Mrs. Walter Storm and Forstgarten International Holding GmbH (“the investors”). The investors, under the loan and option agreement, have forwarded EUR 680,000 (corresponding to approximately USD 1,010,000) to EuroGas. The loan is repayable on October 1, 2010 and will carry an interest rate of 8%. These funds were used for EuroGas Polskas JOA liabilities under the 2009 seismic program. The investors also demanded a signing bonus in the form of 2 Million free tradable common shares of the company under the October 13, 2009 agreement. These shares were provided by non-affiliated shareholders and the company has to reimburse those shareholders in 2010.

The investors have also been granted an option and a right of first refusal to earn a 60% working interest in future EuroGas projects. Furthermore, the investors intend to enter into a Master Financing Agreement, under which the investors are to inject further funds into EuroGas or its operations through a separate $7,000,000 convertible debenture. The investors would be able to convert their debenture into restricted EuroGas common stock at prices ranging from USD 0.25 to USD 0.50 per share over the next 3 years (USD 0.25 per share in the first year; USD 0.35 in the second year; and USD 0.50 in the third year).

On January 4, 2010 the company and Forstgarten agreed to terminate Forstgarten’s participation in the October 13, 2009 loan and option agreement and to repay Forstgarten’s portion of the $1,010,000 loan plus accrued interest under the terms and conditions of the convertible debenture.

NOTE 7 — NOTES PAYABLE TO RELATED PARTIES

Notes payable to related parties are considered current and consist of:		March 31, 2010			Dec. 31, 2009

Loans from a key employee	$	2,721,566		$	882,684

Interest at 10%, unsecured.	$	115,200		$	88,268
Repayments	$	(280,841	)	$	50,614
Transfer of Receivables against EuroGas Texas Corp. 2009				$	1,600,000
Debit for release of Wolfgang Rauball and Dr. Reinhard Rauball				$	(200,000	)
Outstanding salaries 2003 - 2009	$	2,100,000
Total Notes Payable to Related Parties	$	4,655,925		$	2,721,566

A part of this loan will be applied against the stock purchase with the exercise of the warrants owned by Wolfgang Rauball at the time the shares will be issued.

NOTE 8— PREFERRED AND COMMON STOCK

There are 260 shares of 1997 Series Preferred Stock (the “1997 Series preferred stock”). The 1997 Series preferred stock is non- voting and accrues dividends at $ 60.00 per share, or 6 % annually. The 1997 Series preferred stock has a liquidation preference of $ ~~1000~~1,000.00 per share, plus unpaid dividends before liquidation payments applicable to common shares. The 1997 Series preferred stock, along with unpaid dividends thereon, is convertible in common shares at the rate of $ 1.,000.00 divided by the lesser of 125 % of the average closing bid price for five trading days prior to issuance or 82% of the closing bid price for five trading days prior to conversion. Annual dividend requirements of the 1995 Series preferred stock are $ 15,600. The following is a summary of the preferred stock outstanding at March 31, 2010:

The following is a summary of the preferred stock outstanding at September 30, 2009:

			Liquidation Preference				Annual Dividend
							Requirement
	Shares
	Outstanding		Per Share		Total		Per Share	Total
Designation
1997 Series	260	$	1,000.00	$	260,000	$	60.00 $	15,600
Total	260	$			260,000	$		15,600

			Liquidation Preference			Annual Dividend
						Requirement
	Shares
	Outstanding		Per Share	Total		Per Share	Total
Designation
1997 Series	260	$	1000.00 $	260,000	$	60,00 $	15,600
Total	260	$		260,000	$		15,600

Aggregate accrued dividends on preferred stock were $191,100 and $187,200 at March 31, 2010 and at December 31, 2009, respectively.

~~Aggregate accrued dividends on preferred stock were $ 183,300 and $171,600 at September 30, 2009 and December 31, 2008, respectively.~~ 11

~~NOTE~~Item 92. —Management's ~~CONTINGENCIES~~Discussion ~~AND~~and ~~COMMITMENTS~~Analysis of Financial Condition and Results of Operations

~~Purchase~~General of– ~~Rozmin~~The –Company ~~EuroGas~~is ~~acquired~~primarily aengaged ~~direct~~in ~~43%~~the acquisition ~~interest~~of inrights ~~Rozmin~~to ~~s.r.o.~~explore ~~through~~for aand ~~series~~exploit ofnatural ~~transactions~~gas, ~~from~~coal ~~1998~~bed ~~through~~methane gas, ~~April~~crude ~~2002.~~oil, ~~Rozmin~~talc sand other minerals.~~r.o.~~ ~~holds~~The aCompany ~~talc~~has ~~deposit~~acquired interests in several ~~Eastern~~large ~~Slovakia.~~exploration Onconcessions ~~April~~and ~~17,~~is ~~2001,~~in ~~EuroGas~~various ~~entered~~stages of identifying ~~into~~industry anpartners, ~~agreement~~farming toout ~~purchase~~exploration anrights, ~~additional~~undertaking ~~57%~~exploration drilling, ~~interest~~and inseeking ~~Rozmin~~to sdevelop production.~~r.o.~~ ~~from~~The ~~Belmont~~Company ~~Resources,~~is ~~Inc.~~also ~~("Belmont"),~~involved in ~~exchange~~a planning-stage ~~for~~co-generation ~~EuroGas~~and ~~issuing~~mineral ~~12,000,000~~reclamation ~~common~~project. ~~shares~~Unless otherwise indicated, ~~paying~~all ~~Belmont~~dollar ~~$100,000~~amounts in ~~advance~~this ~~royalties,~~Form ~~and~~10-Q ~~modifying~~are ~~the exercise~~reflected ~~price~~in ofUnited ~~existing stock options~~States dollars.

When ~~EuroGas~~used ~~further agreed to issue an additional 1~~herein,~~000,000~~ ~~common shares for each $0.05 decrease in~~ the ~~ten-day~~terms ~~average OTC Bulletin Board quoted trading price of~~ the "Company~~'s common shares below $0.30 per share through April 17~~," ~~2002.~~and ~~During 2002~~ "EuroGas ~~issued 3~~,~~830,000~~" include ~~common shares to Belmont under the stock price guarantee. In connection with the purchase by~~ EuroGas, ~~Rozmin s~~Inc.~~r.o.~~ ~~granted~~and anits ~~overriding~~wholly ~~royalty~~owned ~~to Belmont of two percent of gross revenues from any talc sold~~subsidiaries.

Results ~~Additionally, EuroGas agreed to issue additional common shares to Belmont if Belmont did not realize approximately $1,218,000 from the resale~~ of ~~the~~Operations ~~original~~– ~~12,000,000~~The ~~common~~following ~~shares~~table bysets forth ~~April~~consolidated ~~17,~~income ~~2002,~~statement data and ~~provide~~other ~~notice~~selected ofoperating ~~such~~data ~~deficiency to EuroGas, to compensate Belmont~~ for the ~~shortfall based on the ten~~three-~~day~~months ~~average~~periods ~~trading~~ended ~~price~~March on31, ~~the~~2010 ~~date of the notice of shortfall from Belmont. Because Belmont has not provided notice of the sale of the shares~~ and ~~the resulting deficiency~~2009, EuroGas is not able to calculate the shares that may be issuable, but estimates it may be obligated to issue additional common shares to Belmont based on recent market prices for the Company’s common stockrespectively.

In early 2004 an independent third party provided a $ 500.000 as down-payment for an option to purchase up to 49% of Rozmin s.r.o. from Eurogas, Inc.. The third party, however, failed to pay the agreed-upon annual installments. The option therefore has lapsed and the Company is under no obligation towards the third party anymore. Exercising of this option to purchase Rozmin s.r.o. stock would not have been closed anyway until EuroGas, Inc. has finalized the Share Purchase Agreement dated March 27, 2001 between EuroGas, Inc. and Belmont Resources Ltd.. To date EuroGas, Inc. owes approximately $1,200,000 as well as approximately $250,000 in advance royalties in order to complete the purchase of 57% of Rozmin s.r.o.

		For the Three Months Ended
		March 31,			March 31,
		2010			2009
Oil and Gas Sales		-			-

Depreciation, depletion and amortization				$	71
General and administrative	$	215,184		$	254,892

Total Costs and Operating Expenses	$	215,184		$	254,963

Other Income (Expenses)
Interest Income	$	35,600
Other Income
Interest expense	$	(180,180	)	$	(22,067	)
Income from Accrued Liability/Tax/settlement reduction
Gain/Loss on sale of securities available for sale				$	41,123
Total Other Income (Expense)	$	(144,580	)	$	19,056
Net Profit/Loss	$	(359,764	)	$	(235,907	)
Preferred Dividends	$	(3,900	)	$	(3,900	)
Net Profit/Loss	$	(363,664	)	$	(239,807	)
Basic and Diluted Profit/Loss Per Common Share	$	(0.001	)	$	(0.0008	)
Weighted Average Number of Common Shares Used in Per Share Calculation		322,220,436			303,220,436

Three ~~EuroGas~~months ~~also~~ended ~~agreed~~March ~~to arrange the necessary financing to place the talc deposit into commercial production by April 17~~31, ~~2002~~2010 ~~and~~compared ~~agreed~~with ~~that if the talc deposit was not in commercial production by then, EuroGas agreed to pay Belmont additional~~three ~~advanced~~months ~~royalties~~ended ofMarch ~~$10~~31,~~000~~ ~~per month for each month of delay in achieving commercial production.~~2009

Revenues InThe ~~January 2005 the~~ Company’s ~~subsidiary Rozmin s.r.o. was notified that the concession regarding the Talc deposit~~ had no ~~been~~oil ~~cancelled~~and bygas ~~the~~sales ~~Slovakian Government~~ for ~~unspecified and dubious reasons. At this point therefore no further concession is held by Rozmin. This does not nullify~~ the ~~obligation~~three tomonths ~~Belmont~~ended ~~Resources~~March as31, to2010 ~~the balance of the purchase price. The Company~~ and ~~Belmont, however, entered into an agreement~~ for ~~Belmont not to pursue legal proceedings against~~ the ~~Company as long~~three asmonths ~~the~~ended ~~situation~~March in31, ~~respect to Rozmin has not been cleared~~2009.

Operating Expenses InOperating ~~July~~expenses ~~2009~~primarily ~~Belmont~~include ~~was~~general ~~informed~~and byadministrative ~~Rozmin~~expenses, depreciation, ~~that~~impairment ~~Belmont~~of ~~has~~mineral ~~not~~interests ~~fulfilled~~and ~~the~~equipment ~~purchase~~and ~~contract~~litigation settlement ~~requirement~~expense. toGeneral ~~deposit~~and administrative expenses were $215.184 for the three ~~Rozmin~~months ~~shares~~ended ~~with~~March 31, 2010 compared to $254,963 for the ~~Rozmin~~three ~~Trustee.~~months ended ~~EuroGas~~March ~~Inc~~31, 2009. ~~has~~Depreciation toexpense ~~take~~was ~~legal~~$0 ~~actions~~for ~~against~~the ~~Belmont~~three months ended March 31, 2010 compared to ~~secure~~$71 for the ~~deposit~~three ofmonths ~~the shares.~~ended March 31, 2009.

Other Income and Expense ~~Netherlands~~Interest ~~Tax~~expense ~~Liability~~was –$180,180 ~~EuroGas'~~for ~~former~~the ~~subsidiary~~three months ended March 31, 2010 compared to $22,067 during the three months ended March 31, 2009.

GlobeGas BV lost its appeal for a reduction of a 1992 income tax liability in the Netherlands with a carrying amount of $929,680 at June 30, 2006. The tax arose from the sale of equipment at a profit by the former owner of GlobeGas to its Polish subsidiary. The liability is reflected in EuroGas' financial statements; however, GlobeGas does not have the ability to pay the assessed obligation and as a result may face forced liquidation and dissolution by the Netherlands tax authority. In August of 2005 GlobeGas, BV was stricken from the Registry in the Netherlands, this has put the GlobeGas issue to rest. 12

Income Taxes Historically, ~~NOTE~~the 10Company –has ~~Other~~not ~~information~~been required to pay income taxes due to the Company's absence of net profits. For future years, the Company anticipates that it will be able to utilize operating loss carry forwards in the United States of America of approximately $18,350,000 as of March 31, 2010 to offset profits, if and when achieved, resulting in a reduction in income taxes payable. However, to the extent accumulated deficits have not been incurred in countries where income is earned, such offsets will not be available.

Net OnProfit/ ~~April~~Loss 9,The Company ~~2009~~incurred ~~EuroGas,~~a ~~Inc.~~net ~~issued~~loss 2of ~~Million~~$(363,664) ~~restricted~~for ~~common~~the ~~shares~~three tomonths ~~Regent~~ended ~~Ventures~~March ~~Ltd.~~31, 2010 ~~for~~compared to a ~~prolongation~~net ofloss ~~the payment~~ of ~~the~~$(239,807) ~~purchase price~~ for the 45three %months ~~shareholding~~ended inMarch ~~Mc Callan OIL & GAS (UK) Ltd. till December~~ 31, 2009.

Due to the fluctuating economies Onof ~~June~~the ~~16,~~Eastern ~~2009~~European ~~Eurogas~~countries ~~Inc.~~in ~~issued~~which 17the ~~Million~~Company ~~restricted~~operates, ~~common~~the ~~shares~~Company is subject to ~~Rio~~fluctuations ~~Plata~~in ~~Inc.~~currency ~~and~~exchange ~~others~~rates inthat ~~connection~~can ~~with~~result in the recognition ~~purchase~~ of ~~the~~significant ~~Rio~~gains ~~Plata/~~or ~~Tombstone~~losses ~~properties.~~during ~~EuroGas,~~any ~~Inc~~period. isThe ~~acquiring~~Company recognized a ~~100~~loss %of ~~working~~$0 ~~interest~~ in 56the ~~mining~~three ~~claims known~~months asended ~~the~~March ~~Tombstone~~31, ~~Sandwich~~2010 ~~Property.~~compared Into ~~addition~~a loss ~~EuroGas,~~of ~~Inc~~$0 ~~has~~in ~~entered~~the ~~into~~three anmonths ~~agreement~~ended toMarch ~~purchase~~31, a2009 ~~strategically~~as ~~important~~a ~~parcel~~result of ~~mining~~exchange ~~claims~~rate changes ~~comprising~~and ~~appr~~currency transactions during these periods. ~~485~~The ~~acres~~Company ~~collectively~~does ~~known~~not currently asemploy ~~the~~any ~~TEI~~hedging ~~Open~~techniques ~~Pit~~to ~~Mine~~protect against the risk of currency fluctuations.

Capital On August 27, 2008 EuroGas, Inc. issued 20 Million restricted common shares to Hans D. Dietmann under the agreement to acquire a 30% interest in McCallan Oil & Gas (U.K.) Ltd. (McCallan), a closely held U.K. oil and gas concern, from Mr. Hans D. Dietmann, McCallan's controlling shareholder and Managing Director, and has secured an option to purchase an additional 25% interest in McCallan from Mr. Dietmann. Combined with the agreement to purchase a 45% interest in McCallan from Regent Ventures Ltd., EuroGas will own 100% of McCallan once the acquisitions of the 45% shareholding in McCallan from Regent Ventures Ltd. and the option to purchase the remaining 25% interest in McCallan from Mr. Dietmann are finalized. McCallan's main assets are its wholly-owned subsidiaries EuroGas Polska sp.zo.o ("EuroGas Polska"), a Polish company, and EuroGas GmbH ("EuroGas Austria").Liquidity

The Company had an accumulated ~~EuroGas~~deficit ~~Polska:~~of $160,063,639 at March 31, 2010 substantially all of which has been funded out of proceeds received from the issuance of stock and the incurrence of liabilities. At March 31, 2010 the Company had current assets of $3,712,394 and liabilities of $15,989,395 resulting in a negative working capital of $(12,277,001).

Throughout ~~EuroGas~~its ~~Polska owns a 24% interest in a large Joint Operating Agreement (JOA) operated by Poland's national oil & gas concern Polish Oil & Gas ("PGNiG")~~existence, ~~which itself owns 51% in~~ the ~~JOA. The balance of 25% is held by Aurelian Oil & Gas~~ ~~Plc,~~Company ahas ~~U.K.~~relied ~~public company listed~~ on ~~the~~cash ~~London~~from ~~Stock~~financing ~~Exchange.~~activities ~~The~~to ~~JOA~~provide ~~comprises approximately 3,200 square kilometers with 10 oil and gas concessions in~~ the ~~Polish~~funds required ~~Carpathian~~for ~~Mountains.~~acquisitions ~~The PGNiG~~ and ~~the~~operating ~~Polish Ministry of Environment and Natural Resources have publicly stated in the Annual Reports on Poland's hydrocarbon reserves the existence of a potential 300~~activities.~~000.000 BOE (Barrels of Oil Equivalent) reserve in the southern portion of the concession area.~~

While the Company had a positive ~~EuroGas~~amount ~~Austria~~of cash of $9,498 at March 31, 2010 it had substantial short-term and long-term financial commitments. As noted above, the Company has relied principally on cash provided from equity and debt transactions to meet its cash requirements. The Company does not have sufficient cash to meet its short-term or long-term needs, and it will require additional cash, either from financing transactions or operating activities, to meet its immediate and long-term obligations. There can be no assurance that the Company will be able to obtain additional financing, either in the form of debt or equity, or that, if such financing is obtained, it will be available to the Company on reasonable terms. If the Company is able to obtain additional financing or structure strategic relationships in order to fund existing or future projects, existing shareholders will likely continue to experience further dilution of their percentage ownership of the Company.

If ~~EuroGas Austria owns a 33% shareholding in Rozmin s.r.o. (Rozmin), a Slovakian mining company. Together with~~ the Company’s ~~57%~~is ~~shareholding~~unable into establish ~~Rozmin,~~production ~~which~~or ~~was~~reserves ~~bought~~sufficient byto justify the ~~Company~~carrying ~~from~~value ~~Belmont Resources Ltd. on March 27, 2001 (see details~~ of ~~the~~ ~~Belmont transaction in Note 7)~~its assets, ~~EuroGas GmbH and the Company together will own an undivided 90% shareholding interest in Rozmin s.r.o. subject~~ to aobtain ~~final payment by~~ the ~~Company~~necessary tofunding ~~Belmont. Rozmin plans~~ to ~~place~~meet ~~the~~its ~~huge~~short ~~Germerska~~and ~~Poloma talc (soapstone) deposit into production after the Supreme Court of the Slovak Republic in a non~~long-~~appealable landmark decision~~term obligations, ~~published~~or onto ~~April~~fund ~~26,~~its ~~2008,~~exploration has ruled that the cancellation of Rozmin’s mining concession at Gemerska Poloma in January 2005 by the Ministry of Economy’s Mining Office at Spisska Nova Ves was considered a severe violation of Rozmin’s civil and ~~constitutional~~development ~~rights~~program, ~~under~~all ~~the~~or ~~laws of the Slovak Republic. Ownership of the Gemerska Poloma concession was taken~~a ~~away~~portion ~~illegally from Rozmin by the Ministry~~ of ~~Economy’s Mining Office at Spisska Nova Ves in January 2005 and was subsequently transferred by~~ the ~~Ministry~~mineral ofinterests ~~Economy’s Mining Office at Spisska Nova Ves and the Supreme Mining Office at Banska Stiavna~~ in aunproven ~~dubious~~properties ~~and~~will -be incharged ~~the opinion of the Company – corrupt transaction –~~ to ~~a small Slovak accounting service company owned and controlled by Peter Corej and his wife. See further details about Peter Corej et al and his~~ ~~involvement~~operations, inleading ~~this~~to ~~matter~~significant inadditional ~~the Company’s 10K per December 31, 2007~~losses.

Inflation Gemerska Poloma is one of the largest and purest talc ore bodies of the world with 150,000,000 estimated tons of carbonate reserve. Belmont Resources Ltd., a Canadian public mining company, is currently still the registered owner of 57% of Rozmin, but under the terms and conditions of the March 21, 2001 Purchase and Sales Agreement between the Company and Belmont this 57% interest has to be transferred by Belmont into the Company’s name once the final payment in the amount of appr. $1,000,000 under the terms of the agreement has been made by the Company. The remaining 10% interest in Rozmin is owned by the owner of a Berlin based German coal-trading company.

The ~~Company~~amounts ~~and~~presented ~~EuroGas GmbH have suffered huge financial losses, incl. the $ 113.000.000 Default Judgement which was awarded against the company by the Bankruptcy Court~~ in ~~Houston, due to~~ the ~~illegal and – in the opinion of the~~ Company,'s ~~Rozmin~~consolidated ~~and~~financial ~~EuroGas~~statements ~~GmbH~~do –not ~~corrupt~~provide ~~circumstances~~for of the ~~illegal~~effect ~~cancellation~~ of ~~Rozmin’s valid mining concession at Gemerska Poloma. In its non-appealable April 26, 2008 unanimous landmark Decision the~~ ~~Supreme~~inflation ~~Court~~on of the ~~Slovak Republic has found the Ministry of Economy’~~Company's ~~Mining~~operations ~~Office~~or ~~Unit~~its atfinancial ~~Spisska~~position. ~~Nova~~Amounts ~~Ves~~shown for asproperty, ~~Defendant~~plant, ~~guilty~~and ofequipment ~~having~~and ~~severely~~for ~~violated~~costs ~~the~~and ~~Plaintiff~~expenses ~~Rozmin’s~~reflect ~~civil~~historical costs and ~~constitutional~~do ~~rights~~not ~~under~~necessarily ~~the~~represent ~~law~~replacement ofcosts ~~the Slovak~~or ~~Republic~~charges ~~and have instructed the Defendant~~ to operations ~~remedy~~based ~~the~~on ~~concession~~replacement ~~matter forthwith~~costs. The Company's operations, ~~EuroGas~~together ~~GmbH~~with other ~~and~~sources, ~~Rozmin~~are ~~have~~intended ~~separately~~to ~~informed~~provide ~~the~~funds ~~European~~to ~~Commission~~replace ~~at Brussels~~property, ~~Belgium~~plant ~~about the final non-appealable outcome of the~~and ~~litigation,~~equipment as ~~the~~necessary. ~~Slovak~~Net ~~Republic~~income iswould abe ~~full~~lower ~~Member~~than ofreported if the ~~European~~effects of ~~Union,~~inflation ~~which~~were ~~just~~reflected ~~introduced~~either onby ~~Jan.1,~~charging ~~2009~~operations ~~the~~with ~~EU’s~~amounts ~~common~~that represent ~~currency,~~replacement ~~the~~costs ~~Euro,~~or asby ~~its~~using ~~own~~other ~~currency,~~inflation ~~and~~adjustments. ~~which~~Due ~~has~~ to inflationary ~~fully~~problems ~~abide~~in byEastern ~~the~~Europe ~~law~~that ~~and~~are ~~the~~seen ~~constitution~~in ofcurrency ~~the~~exchange ~~European Commission. In addition the company~~losses, ~~EuroGas GmbH and Rozmin have demanded~~ the ~~immediate~~Company ~~full~~has ~~reinstation~~seen oflosses ~~Rozmin’s~~on ~~concession~~its ~~rights~~asset ~~from~~values ~~the~~in ~~Minister~~those ~~of Economy of the the Slovak Republic~~countries.

After receipt of the non-appealable final Decision by the Supreme Court of the Slovak Republic, the Company and EuroGas GmbH have instructed its US and European solicitors to initiate civil and criminal legal procedures seeking damage from all parties and individuals involved in the illegal cancellation scheme of Rozmin’s mining concession at Gemerska Poloma. On March 3, 2009 the Company’s Slovak mining subsidiary Rozmin commenced a lawsuit against the SlovakRepublic’s Ministry of Economic’s Mining Office at Spisska Nova Ves with the aim to reinstate Rozmin’s mining concession at Germerska Poloma and is currently awaiting the decision of the Court in Kosice, SlovakRepublic. 13

InWarning ~~addition~~Regarding ~~to the legal remedies described above the Company, EuroGas GmbH and Rozmin have also submitted to the General Attorney`s Office of the Slovak Republic as well as to the Tax Authorities and the Anti~~Forward-~~Corruption~~looking ~~Police~~Statements ~~Force of the SlovakRepublic relevant information of the matter~~ and ~~have requested an investigation into the illegal – and in the opinion of the Company, EuroGas GmbH and Rozmin – corrupt practices by Slovak government officials. The European Commission~~Factors ~~in Brussels and the Anti-Corruption Police force have both advised the Company and EuroGas GmbH independently~~ that ~~the~~may ~~relevant~~affect ~~informations~~Future ~~have been forwarded by them to their own investigative agencies for an independent investigation.~~ Results

~~Acquisition~~Factors ~~Terms~~That ofMay ~~McCallan~~Affect ~~Oil~~Future ~~& Gas (UK) Ltd. shares:~~ Results

~~EuroGas~~ This ~~has~~report ~~purchased~~on MrForm 10-Q contains forward-looking statements. ~~Dietmann's~~You ~~30%~~can ~~interest~~identify forward-looking statements by ~~issuing~~their use ~~20.000.000~~of ~~restricted~~the ~~EuroGas~~forward-looking words “anticipate,” ~~Inc~~“estimate,” “project,” “likely,” “believe,” “intend,” “expect,” or similar words. ~~common~~These ~~shares~~statements discuss future expectations, ascontain ~~well~~projections asregarding 1future developments, operations, or financial conditions, or state other forward-looking information.~~000.000~~ ~~non~~When considering the forward-~~voting~~looking ~~and~~statements ~~non~~made ~~interest~~in ~~bearing~~this ~~Series~~report, ~~2008~~you ~~Preferred~~should ~~Shares~~keep in ~~with~~mind ~~certain~~the ~~Net~~risks ~~Profit~~noted ~~Interest~~in ~~("NPI")~~“Factors ~~rights~~That May Affect Future Results” below and ~~attached~~other tocautionary itstatements throughout this report. AsYou ~~part~~should also keep in mind that all forward-looking statements are based on management’s existing beliefs about present and future events outside of ~~the~~management’s ~~transaction,~~control ~~Mr.~~and ~~Dietmann~~on assumptions ~~agreed~~that may prove to abe ~~lock-up~~incorrect. ~~agreement~~If ~~which~~one ~~prohibits~~or ~~him~~more ~~from~~risks ~~selling~~identified in this report or ~~transferring~~other ~~these~~filing ~~shares~~materializes, ~~for~~or aany ~~period~~other ofunderlying ~~three~~assumptions prove ~~years~~incorrect, ~~without~~our ~~EuroGas'~~actual ~~consent.~~results may vary materially from those anticipated, estimated, projected, or intended.

In Our ~~addition,~~consolidated ~~EuroGas~~financial statements ~~has~~are ~~the~~prepared ~~right~~using togenerally ~~force~~accepted ~~conversion~~accounting ofprinciples applicable ~~the~~to ~~Preferred~~a ~~Shares~~going ~~with the NPI~~concern, ~~together~~which ~~with~~contemplates ~~Mr. Dietmann's remaining 25% shareholding interest in McCallan, once~~ the ~~share~~realization ~~price~~ of ~~the~~assets ~~company~~and liquidation ~~has~~of ~~traded~~liabilities atin ~~$2.50~~the ~~per~~normal ~~share~~course ~~for a period~~ of ~~20 consecutive days~~business.

IfWe ~~EuroGas~~have ~~common~~incurred ~~stock~~significant ~~closes~~losses atsince ~~$2.50~~inception, ~~per~~which ~~share~~have resulted ~~for~~in 20an ~~consecutive~~accumulated ~~trading~~deficit ~~days~~of in$160,063,639 ~~2009~~at orMarch ~~until May~~ 31, ~~2011~~2010. ~~EuroGas~~These losses ~~will~~and ~~issue~~this ~~15.000.000~~significant ~~restricted~~deficit ~~common~~raise ~~shares~~substantial todoubt ~~Mr.~~about ~~Dietmann~~our ~~for~~ability ~~his~~to continue ~~remaining~~as ~~stake~~a ingoing ~~McCallan~~concern. InThe ~~the~~accompanying ~~event~~audited ~~that~~consolidated ~~EuroGas~~financial ~~common~~statements ~~stock~~do ~~doesn't~~not ~~close~~include atany ~~$2.50~~adjustments ~~for~~relating ~~twenty~~to ~~consecutive~~the ~~trading~~recoverability ~~days~~and classification ~~from~~of ~~now~~asset ~~until~~carrying ~~May~~amounts ~~31,~~or ~~2011,~~the ~~Mr.~~amount ~~Dietmann~~and ~~will~~classification beof liabilities ~~allowed~~that tomight ~~retain~~result ~~his~~from ~~25% stake in McCallan along with~~ the ~~Preferred~~outcome ~~Stock~~of ~~and~~this ~~associated NPI~~uncertainty.

~~Any~~ We ~~stock~~are ~~issued~~dependent toupon financing ~~Mr.~~activities ~~Dietmann~~to ~~for~~fund ~~his~~our ~~remaining~~operations ~~25% interest in McCallan~~ and ~~the Preferred Shares~~ will becontinue ~~subject~~ to ~~a three year lock-up agreement which prohibits the sale or transfer of these shares without EuroGas' consent. Any stock issued~~require ~~pursuant~~significant funds to ~~the~~meet ~~Agreement~~our ~~with~~obligations ~~Mr.~~and ~~Dietmann is held by an escrow agent suitable~~ to ~~EuroGas~~pursue ~~and~~our Mrbusiness plan. ~~Dietmann.~~

~~Item~~ EuroGas 2has historically been undercapitalized. ~~Management's~~Actually ~~Discussion~~we have no source of revenues, do not anticipate any revenues in the near term and ~~Analysis~~expect to continue to incur operating losses in the foreseeable future. As a result, we are entirely dependent on financing from the sale of ~~Financial~~securities ~~Condition~~or loans in the future and/or ~~Results~~amounts made available by industry partners in the future. We expect to continue to incur significant costs as part of ~~Operations~~our ongoing and planned projects and do not anticipate that these costs will be offset fully, if at all, by revenues for the foreseeable future. If we are unable to raise capital from the sale of securities, loans, or industry partnerships in the future, we will have to scale back our operations and may, at some point, become insolvent.

~~General~~Our –projects ~~The~~are ~~Company~~highly isspeculative ~~primarily engaged in the acquisition of rights to explore for~~ and ~~exploit~~generally ~~natural~~only ~~gas, coal bed methane~~at ~~gas,~~the ~~crude oil, talc and other minerals. The Company has acquired interests in several large~~ exploration concessions and is in various stages of identifying industry partners, farming out exploration rights, undertaking exploration drilling, and seeking to develop production. The Company is also involved in a planning-stage ~~co-generation and mineral reclamation project~~. ~~Unless otherwise indicated, all dollar amounts in this Form 10-Q are reflected in United States dollars.~~

~~When~~ Our ~~used~~assets ~~herein,~~and ~~the~~interests ~~terms~~are primarily ~~the~~in ~~"Company~~methane gas," natural gas, unconventional gas and ~~"EuroGas~~crude oil exploration and mineral development projects. These projects are highly speculative," whether we are still at the exploratory stage or have commenced ~~include~~development. ~~EuroGas~~We can provide no assurance that any drilling, ~~Inc~~testing, or other exploration project will locate recoverable gases or other fuels in sufficient quantities to be economically extracted. ~~and~~Several ~~its~~test ~~wholly~~wells ~~owned~~are ~~subsidiaries~~typically required to explore each concession or field. We may continue to incur significant exploration costs in specific fields.

~~Results~~ Some of ~~Operations~~our –projects ~~The~~are ~~following~~in ~~table~~countries ~~sets forth~~that ~~consolidated~~have ~~income~~fragile ~~statement data~~ and ~~other selected operating data for~~ ~~the~~unpredictable ~~three~~political and ~~nine~~socio-~~months~~economic ~~periods ended September 30, 2009 and 2008, respectively~~systems.

		September 30,						September 30,
		2009			2008			2009			2008
Oil and Gas Sales	$	-		$	-		$	-		$	-
Costs and Operating Expenses
Depreciation		71			71			213			213
General and administrative		354,765			524,845			877,053			1,405,508
Total Costs and Operating Expenses		(354,836	)		(524,916	)		(877,266	)		(1,405,721	)
Other Income (Expenses)
Interest expense		(23,154	)		(21,004	)		(87,038	)		(66,962	)
gain from reduction of accrued		-			7,766,517			-			7,428,282
liabilities/settlement obligations
Unrealized Gain on sale of securities		(16,764	)		(1,022,604	)		305,995			456,819
Net Other Income (Expenses)		(39,918	)		(1,043,608	)		218,957			7,818,139
Profit/Loss Before Accounting Change		(394,754	)		( 1,568,524	)		(658,309	)		6,412,418
Preferred Dividends		(3,900	)		(3,900	)		(11,700	)		(11,700	)
Profit/Loss Applicable to Common Shares	$	(398,654	)	$	(1,572,424	)	$	(670,009)		$	6,400,718
Basic and Diluted Loss Per Common Share
Net Profit / Loss	$	(0,001	)	$	(0,005	)	$	(0.002	)	$	0.021

Our operations in Eastern Europe, especially in the Eastern and Western Ukraine carry with them certain risks in addition to the risks normally associated with the exploration for, and development of, natural gas and other fuels. Although recent political and socio-economic trends in these countries have been toward the development of market economies that encourage foreign investment, these countries continue to be subject to the risks of political instability, a change of government, unilateral renegotiation of concessions or contracts, nationalization, foreign exchange restrictions, and other uncertainties. The terms of the agreements governing our projects are subject to administration by the various governments and are, therefore, subject to changes in the government itself, changes in government personnel, the development of new administrative policies or practices, the adoption of new laws, and many other factors.

~~Three months ended September 30, 2009 compared with three months ended September 30, 2008~~14

~~Revenues~~Moreover, ~~The~~we ~~Company~~may ~~had~~be required to noobtain ~~oil~~and renew licenses and ~~gas~~permits ~~sales~~on ~~for~~an ongoing basis in connection with further exploration, the ~~three~~drilling ~~months~~of ~~ended~~wells, ~~September~~the 30construction of transportation facilities and pipelines, ~~2009~~the marketing of any fuel that may be produced, and financial transactions necessary for all of the foregoing. The rules, ~~three~~regulations, ~~months~~and ~~ended~~laws ~~September~~governing 30all such matters are subject to change by the various governmental agencies involved. We can provide no assurance that the laws, ~~2008~~regulations, and policies applicable to our interests in various countries in which our projects are located will not be radically and adversely altered at some future date.

~~Operating~~ The ~~Expenses Operating~~continuance, ~~expenses~~completion ~~primarily include general and administrative expenses,~~or ~~depreciation,~~renewal ~~impairment~~ of ~~mineral~~many ~~interests~~of ~~and~~our ~~equipment~~licenses ~~and~~may ~~litigation settlement~~be ~~expense.~~subject ~~General~~to ~~and~~the ~~administrative~~discretion ~~expenses~~of ~~were $ 354,765 for the~~government ~~three~~authorities ~~months~~and ~~ended~~we ~~September~~cannot ~~30,~~therefore ~~2009~~predict ~~compared~~with tocertainty $whether ~~877,053~~they ~~for~~will ~~the three months~~be ~~ended~~continued ~~September~~or ~~30,~~renewed ~~2008.~~or ~~Depreciation~~whether ~~expense~~we ~~was~~will ~~$71~~be ~~for~~successful ~~the~~in ~~three~~obtaining ~~months~~all permits ~~ended~~and ~~September~~licenses ~~30,~~required ~~2009 compared~~ to ~~$71~~fully ~~for~~exploit ~~the~~our ~~three~~interests ~~months~~in ~~ended~~those ~~September 30, 2008~~countries.

~~Other~~ In ~~Income~~general, ~~and~~we ~~Expense~~have had the right ~~Interest~~to ~~expense~~conduct ~~was~~basic $exploration 23on all concessions or fields in which we have an interest. However,~~154~~ in order to drill for, recover, transport or sell any gas or other hydrocarbons, we will generally be required to obtain additional licenses and permits and enter into agreements with various landowners and/or government authorities. The issuance of most such permits and licenses will be contingent upon the ~~three~~consent ~~months~~of ~~ended~~national ~~September~~and 30local governments having jurisdiction over the production area, ~~2009~~which entities have broad discretion in determining whether or ~~compared~~not to $grant 21permits and licenses. Moreover,~~004~~ ~~during~~even if obtained, such licenses, permits, and agreements will generally contain numerous restrictions and require payment by us of a development/exploration fee, typically based on the ~~three~~market value ~~months~~of ~~ended~~the ~~September~~economically 30recoverable reserves. The amount of a fee and other terms of any such license, ~~2008~~permit, or agreement will affect the commercial viability of any extraction project. We can provide no assurance that we will be able to obtain the necessary licenses, permits, and agreements. Even if we do obtain such items, the associated costs, delays and restrictions may significantly affect our ability to develop the affected project.

~~Income~~ Our ~~Taxes~~projects ~~Historically, the~~may ~~Company~~never ~~has~~begin ~~not~~producing ~~been required to pay income taxes due to the Company's~~valuable ~~absence of net profits~~hydrocarbons. For future years, the Company anticipates that it will be able to utilize operating loss carry forwards in the United States of America of approximately $18,350,000 as of September 30, 2009 to offset profits, if and when achieved, resulting in a reduction in income taxes payable. However, to the extent accumulated deficits have not been incurred in countries where income is earned, such offsets will not be available.

~~Net~~ None ~~Profit/~~of ~~Loss~~the ~~The~~projects in which we ~~Company~~own ~~incurred~~an ainterest ~~net~~is ~~loss~~presently ofproducing ~~($394,754)~~gas ~~for~~or ~~the~~other ~~three~~hydrocarbons. ~~months~~We ~~ended~~can ~~September~~provide ~~30,~~no ~~2009~~assurance ~~compared~~that toany aof ~~net~~our ~~loss~~projects ofwill ~~(1,568,524)~~at ~~for~~any ~~the~~time ~~three~~commence ~~months~~production ~~ended~~of ~~September~~any ~~30,~~valuable ~~2008~~resource.

~~Due~~ We toare ~~the~~dependent ~~fluctuating~~upon ~~economies~~certain ofofficers, ~~the~~key ~~Eastern~~employees, ~~European~~and ~~countries in which the Company operates~~consultants, the ~~Company~~loss ~~is subject to fluctuations in currency exchange rates that can result in the recognition~~ of ~~significant~~which ~~gains~~would ~~or losses during any period. The Company~~adversely ~~recognized~~affect aour ~~loss~~ability ~~of $0 in the three months ended September 30, 2009 compared~~ to a ~~loss~~continue ~~of $0~~ in ~~the three months ended September 30, 2008 as a result of exchange rate changes and currency transactions during these periods~~business. ~~The Company does not currently employ any hedging techniques to protect against the risk of currency fluctuations.~~

~~Nine~~ We ~~months~~are ~~ended~~dependent ~~September~~on 30the services of Wolfgang Rauball, ~~2009~~Chairman ~~compared~~and ~~with~~Chief ~~Nine months~~Executive ~~ended~~Officer ~~September~~of 30the company, ~~2008~~who had personally guaranteed substantial investments by various creditors as well as solving the company’s bankruptcy proceedings over the last couple of years. We do not maintain key-man life insurance on any of EuroGas employees.

~~Revenues~~Subsequent ~~The~~evaluation ~~Company had~~may noreveal ~~oil~~that ~~and~~our ~~gas~~unproved ~~sales~~properties ~~for~~are ~~the~~not ~~nine~~valuable, ~~months~~and ~~ended~~we ~~September~~may ~~30,~~need ~~2009~~to ~~and~~record an ~~for~~impairment of the ~~nine~~ ~~months~~value ~~ended~~of ~~September~~those 30properties, ~~2008~~which would adversely affect our financial condition.

~~Operating~~ We ~~Expenses~~capitalize ~~Operating expenses~~costs ~~primarily~~related ~~include~~to unproved ~~general~~gas and ~~administrative~~mineral ~~expenses~~properties under the full cost method. We review our unproved properties periodically to assess whether an impairment allowance should be recorded. On March 31, ~~depreciation~~2010, we had capitalized costs related to the ~~impairment~~acquisition of mineral ~~interests~~properties ~~and~~not ~~equipment~~subject ~~and~~to ~~litigation~~amortization ~~settlement~~in ~~expense~~the amount of $2,050,000.

~~General~~ Severe ~~and~~weather ~~administrative expenses~~will ~~were $ 877~~interrupt,~~053~~ ~~for~~and ~~the~~may ~~nine~~adversely ~~months ended September 30~~affect, ~~2009 compared to~~our $activities ~~1,405,508~~in ~~for~~various ~~the~~parts ~~nine~~of ~~months ended September 30, 2008. Depreciation expense was $ 213 for~~ the ~~nine months ended September 30, 2009 compared to $ 213 for the nine months ended September 30, 2008~~world.

~~Income~~ Severe ~~Taxes~~weather ~~Historically,~~conditions ~~the~~frequently ~~Company~~interrupt ~~has~~much ~~not~~of ~~been~~our ~~required~~exploratory toand ~~pay~~testing ~~income~~work. ~~taxes~~Heavy precipitation ~~due~~sometimes makes travel to ~~the~~exploration ~~Company's absence~~sites ofor ~~net~~drilling ~~profits.~~locations difficult ~~For~~or ~~future~~impossible. ~~years,~~Extremely ~~the~~cold ~~Company~~temperatures ~~anticipates~~may ~~that~~delay itor ~~will~~interrupt bedrilling, ~~able~~well toservicing, ~~utilize~~and ~~operating~~production ~~loss~~(if ~~carry~~commenced, ~~forwards~~of inwhich ~~the~~we ~~United~~can ~~States~~give ~~of America~~no ofassurance). ~~approximately~~The ~~$18,350,000~~temperatures asin all of ~~June~~the ~~30,~~regions ~~2009~~in towhich ~~offset~~we ~~profits,~~have ifexploratory or ~~and~~other ~~when achieved,~~operations ~~resulting~~are inextremely acold. ~~reduction~~Even inif ~~income~~recoverable ~~taxes~~reserves ~~payable.~~are discovered ~~However,~~in regions prone to severe weather, the ~~extent~~ ~~accumulated~~above-described ~~deficits~~adverse weather ~~have~~conditions ~~not~~may ~~been~~limit ~~incurred~~production involumes, ~~countries~~increase ~~where~~production ~~income~~costs, isor ~~earned,~~otherwise ~~such~~prohibit ~~offsets~~production ~~will~~during ~~not~~extended beportions ~~available.~~of the year.

~~Capital and Liquidity~~15

The ~~Company~~prices ~~had an accumulated deficit~~ of ~~$152,272,855 at September 30, 2009 substantially all of which has been funded out of proceeds received from~~ the ~~issuance~~various ofhydrocarbons ~~stock~~we ~~and~~produce ~~the incurrence~~or ~~of liabilities. At September 30, 2009 the Company had current assets~~may ofproduce $are ~~1,235~~volatile and ~~liabilities of $ 12,339,046 resulting in a negative working capital of $ (12,337,811)~~unstable.

~~Throughout~~The ~~its~~prices ~~existence~~of oil, ~~the~~natural gas, ~~Company~~methane ~~has~~gas ~~relied~~and onother ~~cash~~fuels ~~from~~have ~~financing~~been, ~~activities~~and are likely to ~~provide~~continue ~~the~~to ~~funds~~be, ~~required~~volatile ~~for acquisitions~~ and ~~operating~~subject ~~activities.~~to Aswide afluctuations ~~result,~~in ~~the~~response ~~Company used~~to ~~net~~numerous ~~cash of $ 3~~factors,~~298,747~~ including ~~during~~ the ~~nine months ended September 30, 2009.~~ following:

~~While~~changes ~~the~~in ~~Company had a positive amount of cash of $ 1,235 at September 30, 2009 it had substantial short-term and long-term financial commitments. As noted above,~~ the ~~Company~~supply ~~has relied principally on cash provided from equity~~ and ~~debt~~demand ~~transactions~~for to meet its cash requirements. The Company does not have sufficient cash to meet its short-term or long-term needs, and it will require additional cash, either from financing transactions or operating activities, to meet its immediate and long-term obligations. There can be no assurance that the Company will be able to obtain additional financing, either in the form of debt or equity, or that, if such ~~financing is obtained, it will be available to the Company~~fuels; on reasonable terms. If the Company is able to obtain additional financing or structure strategic relationships in order to fund existing or future projects, existing shareholders will likely continue to experience further dilution of their percentage ownership of the Company.
Ifpolitical ~~the~~conditions ~~Company~~in isoil, ~~unable~~natural ~~to establish production or reserves sufficient to justify the carrying value of its assets~~gas, toand ~~obtain~~other ~~the~~fuel-producing ~~necessary funding to meet its short~~ and ~~long~~ fuel-~~term~~consuming ~~obligations, or to fund its~~areas; ~~exploration and development program, all or a portion of the mineral interests in unproven properties will be charged to operations, leading to significant additional losses.~~
the extent of domestic production and importation of such fuels and ~~Inflation~~substitute fuels in relevant markets;
~~The~~weather amounts presented in the Company's consolidated financial statements do not provide for the effect of inflation on the Company's operations or its financial position. Amounts shown for property, plant, and equipmentconditions; and for costs and expenses reflect historical costs and do not necessarily represent replacement costs or charges to operations based on replacement costs. The Company's operations, together with other sources, are intended to provide funds to replace property, plant and equipment as necessary. Net income would be lower than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments. Due to inflationary problems in Eastern Europe that are seen in currency exchange losses, the Company has seen losses on its asset values in those countries.
~~Warning~~the ~~Regarding~~competitive ~~Forward-looking~~position ~~Statements~~of ~~and~~each ~~Factors~~such ~~that~~fuel ~~may~~as ~~affect~~a ~~Future~~source ~~Results~~of energy as compared to other energy sources;
~~This Quarterly Report on Form 10-Q contains forward-looking statements and information relating to~~ the ~~Company~~refining ~~and~~capacity ~~its business, which are based on the beliefs~~ of ~~management~~crude of the Company and on assumptions made based on information currently available to management. These statements can be identified by the use of the words "will," "anticipate," "estimate," "project," "likely," "believe," "intend," "expect" or similar words. Forward-looking statements reflect the current views of management of the Company and are not intended to be accurate descriptions of the future. When considering these statements, the reader should bear in mind the cautionary information set forth in this section and other cautionary statements throughout this Report , and in the Company's other filings with the Securities and Exchange Commission. All forward-looking statements are based on management's existing beliefs about present and future events outside of management's control and on assumptions that may prove to be incorrect. The discussion of the future business prospects of the Company is subject to a number of risks and assumptions, including those identified below. Should one or more of these or other risks materialize or if the underlying assumptions of management prove incorrect, actual results of the Company may vary materially from those anticipated, estimated, projected or intended. Among the factors that may affect the Company's results are its ability to establish beneficial relationships with industry partners to provide funding and expertise to the Company's projectspurchasers; ~~its efforts to locate commercial deposits of hydrocarbons on the Company's concessions and licenses; the~~ negotiation of additional licenses and permits for the exploitation of any reserves located; the success of exploratory activities; the completion of wells drilled by the Company, its joint venture partners and other parties allied with the Company's efforts; the economic recoverability of in-place reservoirs of hydrocarbons; technical problems in completing wells and producing gas; the success of marketing efforts; the ability to obtain the necessary financing to successfully pursue the Company's business strategy; operating hazards and uninsured risks; the intense competition and price volatility associated with the oil and gas industry; and international and domestic economic conditions.
~~The Company's activities are subject to risks in addition to~~ the ~~risks~~effect ~~normally associated with the exploration and development~~ of ~~hydrocarbons.~~governmental ~~Each~~regulation ofon the ~~eastern European countries in which the Company has obtained or seeking to obtain concessions is in the process of developing capitalistic economies. As a result~~production, ~~many of their laws~~transportation, ~~regulations,~~ and ~~practices~~sale ~~with respect to the exploration and development~~ of ~~hydrocarbons have not been time tested or~~oil, ~~in some~~natural ~~cases~~gas, ~~yet adopted. The Company's operations are subject to significant risks that any change in the government itself or in government personnel, or the development of new policies~~ and practices may adversely affect the Company's operations and financial results at some future date. Furthermore, the Company's concessions and licenses are often subject, either explicitly or implicitly, to ongoing review by governmental ministries. In the event that any of these countries elects to change its regulatory system, it is possible that the government might seek to annul or amend the governing agreements in a manner unfavorable to the Company or impose additional taxes or other ~~duties on the activities of the Company~~fuels. As a result of the potential for political risks in these countries, it remains possible that the governments might seek to nationalize or otherwise cause the interest of the Company in the various concessions and licenses to be forfeited. Many of the areas in which the Company's prospects are located lack the necessary infrastructure for transporting, delivering, and marketing the products which the Company seeks to identify and exploit. Consequently, even if the Company is able to locate hydrocarbons in commercial quantities, it may be required to invest significant amounts in developing the infrastructure necessary to carry out its business plan. The Company does not presently have a source of funding available to meet these costs.

~~Future~~Low ~~terrorist~~prices ~~activity~~ or highly volatile ~~government~~prices ~~action~~for ~~against~~any ~~perceived~~fuel ~~terrorist~~being ~~threats~~explored inor ~~the~~produced ~~United~~at ~~States~~one orof inour projects will ~~areas~~adversely ofaffect ~~the~~our ~~world~~ability into ~~which~~secure ~~the~~financing ~~Company~~or ~~does~~enter ~~business~~into suitable joint ventures or ~~owns~~other ~~property~~arrangements ~~may~~with industry participants. In addition, if we ~~however~~commence recovery of fuel at any of our projects, ~~adversely~~a ~~affect~~low or volatile price for the ~~Company's~~fuel ~~business~~being ~~operations~~recovered will adversely affect revenue and ~~financial condition~~other operations.

~~Item~~ Our 3.operations ~~Quantitative~~involve numerous hazards, and ~~Qualitative~~we ~~Disclosures~~maintain ~~about~~no insurance ~~Market~~against ~~Risk~~such risks.

~~The~~Exploring ~~Company~~for ~~conducts business in many foreign currencies. As a result of the effects that foreign exchange rate movements of those currencies have on the Company's costs and on the cash flows~~fuel, ~~which~~ itdrilling ~~receives from its foreign operations~~wells, ~~the~~and ~~Company~~producing isfuel ~~subject to foreign~~involves ~~exchange~~numerous ~~rate risks. The Company believes that it currently has no other material market risk exposure. To date~~hazards, ~~the~~including ~~Company has addressed its foreign currency exchange rate risks principally by maintaining its liquid assets in U.S. dollars until payments in foreign currency are required, but~~ the ~~Company does not reduce this risk by utilizing hedging activities.~~ following:

~~Item 4. Controls and Procedures~~fire,
~~Based on their evaluation~~explosions, ~~as of~~ a date within 90 days of the filing date of this Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rule 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended) are effective. There have been no significant changes in internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
~~PART II - OTHER INFORMATION~~blowouts,
~~Item~~pipe ~~1. Legal Proceedings~~failures,
~~There~~casing ~~are currently no legal proceedings pending against the~~collapses, ~~Company~~
~~Item~~unusual 2.or ~~Other~~unexpected ~~information~~formations and pressures, and
~~McCallan~~Environmental ~~Oil~~hazards &such ~~Gas~~as ~~(UK)~~spills, ~~Ltd~~leaks, ruptures, and discharges of toxic substances.

~~Combined~~ If ~~with~~any ~~the~~of ~~agreement~~these events were to occur ~~purchase~~we amight ~~45%~~be ~~interest~~forced ~~in McCallan~~to ~~from~~cease ~~Regent~~any ~~Ventures~~or ~~Ltd.~~all of our exploration, ~~EuroGas~~drilling, ~~will~~or production ~~own~~activities ~~100%~~on ofa ~~McCallan~~temporary ~~when~~or ~~the Regent~~permanent ~~acquisition~~basis. ~~and~~In ~~the~~addition, ~~option~~these events might lead to ~~purchase~~environmental ~~the~~damage, ~~remaining~~personal ~~25%~~injury, ~~interest~~and inother Mcharm ~~Callan~~resulting ~~from~~in ~~Hans~~substantial Dliabilities to third parties. ~~Dietmann~~We ~~are~~do ~~finalized~~not maintain insurance against these risks. ~~McCallan's~~Even ~~main~~if ~~assets~~we ~~are~~were ~~its~~to obtain insurance, we might not ~~wholly-owned~~be ~~subsidiaries~~insured ~~EuroGas~~against ~~Polska~~all ~~sp.z.o.o~~losses ~~("EuroGas~~or ~~Polska"),~~liabilities athat ~~Polish~~might arise from these hazards ~~company~~because the insurance may be unavailable at economic rates, ~~and~~due ~~Vienna~~to limitations in the insurance policies, ~~Austria~~or ~~based~~other ~~EuroGas~~factors. ~~GmbH~~Any ~~("EuroGas~~uninsured ~~Austria")~~loss would likely have a material adverse impact on our business and operations.

~~EuroGas~~ Our ~~Polska~~operations are subject to numerous environmental laws, compliance with which may be extremely costly.

~~EuroGas~~ Our ~~Polska~~operations ~~owns~~are asubject ~~24% interest in a large Joint Operating~~to ~~Agreement~~environmental ~~(JOA)~~laws ~~operated~~and byregulations ~~Poland's~~in ~~national~~the ~~oil~~various &countries ~~gas~~in ~~concern~~which ~~Polish~~they ~~Oil~~are &conducted. ~~Gas~~These ~~("PGNiG"),~~laws ~~which~~and ~~itself~~regulations ~~owns~~frequently ~~51%~~require incompletion ~~the JOA. The balance~~ of ~~25%~~a iscostly ~~held~~environmental byimpact ~~Aurelian~~assessment ~~Oil~~and &government ~~Gas~~review ~~Plc,~~process aprior ~~U.K.~~to commencing ~~public~~exploratory ~~company~~and/or ~~listed~~development ~~on the London Stock Exchange~~activities. ~~The~~In ~~JOA comprises approximately 3~~addition,~~200~~ ~~square kilometers with 10~~environmental ~~oil~~laws and ~~gas~~regulations ~~concessions~~may inrestrict, ~~the~~prohibit, ~~Polish~~or ~~Carpathian~~impose ~~Mountains.~~significant ~~The~~liability ~~PGNiG and the Polish Ministry of Environment and Natural Resources have publicly stated~~ in ~~the~~ ~~Annual~~connection ~~Reports~~with onspills, ~~Poland's~~releases, ~~hydrocarbon~~or ~~reserves~~emissions ~~the existence~~ of avarious ~~potential 300.000.000~~substances ~~BOE~~produced ~~(Barrels of Energy) reserve~~ in association ~~the~~with ~~southern~~fuel ~~portion~~exploration ofand ~~the concession area~~development.

We ~~RWE-DEA,~~can aprovide ~~subsidiary~~no ofassurance ~~Germany's~~that we ~~utility~~will ~~giant~~be ~~RWE,~~able ~~confirmed~~to incomply ~~its~~with ~~Annual~~applicable ~~Report~~environmental ~~2007~~laws anand ~~oil~~regulations ~~discovery~~or that onthose alaws, ~~small~~regulations ~~concession~~or atadministrative ~~the~~policies ~~northwestern~~or ~~flank~~practices ofwill ~~the~~not ~~JOA's Carpathian concession area while PGNiG has recently made a large 2.4 TCF natural~~be ~~gas~~changed ~~discovery~~by at the ~~northeastern~~various ~~flank~~governmental ofentities. ~~the~~The ~~concession~~cost ~~area~~ of ~~the~~compliance ~~JOA~~with current ~~next~~laws toand ~~the~~regulations ~~Ukrainian~~or ~~border~~changes ~~where~~in ~~several~~environmental ~~smaller~~laws ~~producing~~and ~~fields~~regulations could ~~exist~~require atsignificant ~~shallow depth~~expenditures. ~~Recently~~Moreover, ~~PGNiG~~if ~~gave~~we ~~notice~~violate toany ~~the~~governing laws ~~JOA~~or ~~interest~~regulations, ~~holders~~we tomay ~~commence~~be acompelled ~~large~~to ~~scale seismic~~pay ~~program~~significant infines, ~~the~~penalties, ~~central~~or other ~~and~~payments. ~~northeastern~~Costs ~~portion~~associated ofwith ~~the~~environmental ~~concession~~compliance ~~area~~or ofnoncompliance may ~~the~~have ~~JOA~~a ~~and~~material ~~has~~adverse ~~suggested~~impact toon ~~drill~~our ~~two~~financial ~~deep~~condition ~~wells~~or inresults ~~that portion~~ of operations in the ~~concession area~~future.

~~EuroGas Austria~~ 16

~~EuroGas~~Most Austria owns a 33% shareholding in Rozmin s.r.o. (Rozmin), a Slovakian mining company. Together with the Company’s 57% shareholding in Rozmin, which was bought by the Company from Belmont Resources Ltd. on March 27, 2001 (see details of ~~the~~ ~~Belmont~~our ~~transaction~~outstanding inshares ~~Note~~are ~~7),~~free ~~EuroGas~~trading ~~GmbH~~ and ~~the Company together own an undivided 90% shareholding interest in Rozmin s.r.o. . Rozmin plans to place the huge Germerska Poloma talc (soapstone) deposit into production. Therefore~~, onif ~~March 6,~~sold ~~2009 the Company has entered into a Long-Term Talc Supply Agreement with Mondo Minerals , a well-established market leading producer and refiner of talc~~ in ~~Europe,~~large ~~after the Supreme Court of the Slovak Republic in a non-appealable landmark decision published on April 26~~quantities, ~~2008,~~may ~~has~~adversely ~~ruled~~affect ~~that~~ the ~~cancellation~~market ofprice ~~Rozmin’s~~for ~~mining~~our ~~concession~~common at Gemerska Poloma in January 2005 by the Ministry of Economy’s Mining Office at Spisska Nova Ves was considered a severe violation of Rozmin’s civil and constitutional rights under the laws of the Slovak Republicstock. ~~Ownership of the Gemerska Poloma concession was taken away illegally from Rozmin by the Ministry of Economy’s Mining Office at Spisska Nova Ves in January 2005 and was~~ subsequently transferred by the Ministry of Economy’s Mining Office at Spisska Nova Ves and the Supreme Mining Office at Banska Stiavna in a dubious and - in the opinion of the Company – corrupt transaction – to a small Slovak accounting service company owned and controlled by Peter Corej and his wife. See further details about Peter Corej et al and his involvement in this matter in the Company’s 10K per December 31, 2007.

~~The~~ Most ~~Long-Term~~of ~~Talc~~the ~~Supply~~approximately 322,220,436 ~~Agreement~~shares ~~with~~of ~~Mondo~~common ~~Minerals~~stock ~~calls~~issued ~~for~~and ~~Rozmin~~outstanding toas ~~supply a minimum~~ of ~~60.000~~March ~~tons~~31, of2010 are ~~Gemerska~~free ~~Poloma~~trading ~~talc~~or ~~per~~are ~~year~~eligible for aresale ~~period~~under ofRule 10144 ~~years~~under ~~with~~the ~~Mondo~~Securities Act. ~~Minerals~~Although ~~holding~~ the ~~option~~resale toof ~~extend~~certain ~~the~~of ~~agreement~~these ~~for~~shares ~~another~~may ~~10 years.~~be ~~Mondo~~subject ~~Minerals~~to ~~has~~the ~~also~~volume limitations ~~been~~and ~~granted~~other arestrictions ~~right~~under ofRule ~~first~~144, ~~refusal~~the topossible ~~acquire~~resale ~~Rozmin~~of in the remaining ~~event~~shares ~~that~~may ~~the~~have ~~Company~~an ~~opts~~adverse toeffect ~~sell~~on athe ~~51%~~market orprice ~~greater~~for ~~interest~~our ~~in Rozmin~~common stock.

~~Gemerska~~ EuroGas ~~Poloma~~has isauthorized ~~one~~capital of ~~the largest and purest talc ore bodies of the world with 150~~ 325,000,000 ~~estimated~~shares ~~tons~~ of ~~carbonate~~common ~~reserve.~~stock, ~~Belmont~~par ~~Resources~~value ~~Ltd~~$0.,001 aper ~~Canadian~~share, ~~public~~and ~~mining company~~3,661,968 shares ~~is currently still the registered owner~~ of ~~57%~~preferred ~~of Rozmin~~stock, ~~but~~ ~~under~~par ~~the~~value ~~terms~~$0.001 ~~and~~per ~~conditions~~share. As of ~~the~~ March 2131, ~~2001~~2010 there ~~Purchase~~were ~~and Sales Agreement between the Company and Belmont this 57% interest has to be transferred by Belmont into the Company’s name once the final payment in the amount of appr. $1~~322,~~000~~220,~~000~~436 ~~under~~shares ~~the terms~~ of ~~the~~common ~~agreement~~stock ~~has~~and ~~been~~260 ~~made~~shares byof ~~the~~preferred ~~Company~~stock issued. ~~The remaining 10% interest in Rozmin is owned by a Berlin based German trading company.~~

~~The~~On ~~Company~~or ~~and~~about ~~EuroGas~~March ~~GmbH~~2009 ~~have~~the ~~suffered~~company ~~huge~~requested ~~financial~~from ~~losses~~the ~~due~~third Judicial toDistrict ~~the~~Court ~~illegal~~for ~~and~~the –Salt inLake ~~the~~County, ~~opinion~~State of ~~the Company~~Utah, ~~Rozmin~~USA ~~and~~a ~~EuroGas~~court order ~~GmbH~~to –hold ~~corrupt~~a ~~circumstances~~special ofshareholders ~~the~~meeting. ~~illegal~~On ~~cancellation~~April of10, ~~Rozmin’s~~2009 ~~valid~~the ~~mining concession~~company atreceived ~~Gemerska~~an ~~Poloma.~~order Ingranting ~~its~~petition ~~non-appealable~~and ~~April~~ordering ~~26,~~a ~~2008~~special ~~landmark~~shareholders ~~unanimous~~meeting by ~~Decision~~ the ~~Supreme~~third Judicial District Court offor the ~~SlovakRepublic~~Salt ~~has~~Lake ~~found~~County, ~~the~~State ~~Ministry~~ of ~~Economy’s~~Utah, USA. ~~Mining~~A ~~Office~~special ~~Unit~~shareholders atmeeting ~~Spisska~~is ~~Nova~~ordered ~~Ves~~by asthe ~~Defendant~~court ~~guilty~~to ofincrease ~~having severely~~the ~~violated~~authorized ~~the~~capital ~~Plaintiff~~of ~~Rozmin’s~~the ~~civil~~company ~~and~~from ~~constitutional~~325,000,000 ~~rights~~to ~~under~~625,000,000 ~~the~~shares ~~law~~of common stock of the ~~SlovakRepublic~~company. ~~and~~The ~~have~~company ~~instructed~~intends to follow the ~~Defendant~~court ordered special shareholders meeting to ~~remedy~~be ~~the~~held ~~concession~~as ~~matter~~soon ~~forthwith~~as practicable.

We ~~The Company, EuroGas GmbH and Rozmin~~ have ~~separately~~not ~~informed~~paid ~~the~~any ~~European Commission at Brussels, Belgium about the final non-appealable outcome of the litigation as the Slovak Republic is a full Member of the European Union which has just~~dividends ~~introduced~~ on ~~Jan.1,~~our ~~2009 the EU’s~~ common ~~currency,~~stock ~~the~~and ~~Euro,~~do asnot ~~its~~expect ~~own~~to ~~currency,~~pay ~~and~~dividends ~~which~~with ~~has~~respect to ~~fully abide by~~ the ~~law and the constitution of the European Commission. In addition the company, EuroGas GmbH and Rozmin have demanded the~~ ~~immediated~~common ~~full~~stock ~~reinstation~~in ~~of Rozmin’s concession rights from~~ the ~~Minister~~near ~~of Economy of the the Slovak Republic~~future.

We ~~After~~have ~~receipt~~not ofpaid, ~~the~~and ~~non-appealable~~do ~~final~~not ~~Decision~~plan to bypay, ~~the~~dividends ~~Supreme~~on ~~Court~~our ofcommon ~~the~~stock ~~Slovak~~in ~~Republic,~~ the ~~Company~~foreseeable ~~and~~future, ~~EuroGas~~even ~~GmbH~~if ~~have~~we become ~~instructed~~profitable. ~~its~~Earnings, USif ~~and~~any, ~~European~~are ~~solicitors~~expected to ~~initiate~~be ~~civil~~used ~~and~~to ~~criminal~~advance ~~legal procedures seeking damage from all~~our ~~parties~~activities and ~~individuals~~for ~~involved~~general incorporate ~~the~~purposes, ~~illegal~~rather ~~cancellation~~than ~~scheme~~to ofmake ~~Rozmin’s~~distributions to ~~mining concession at Gemerska Poloma~~shareholders.

You Inshould ~~addition~~consider tothis ~~the~~cautionary ~~legal~~warning ~~remedies described above the Company, EuroGas GmbH and Rozmin have also submitted to the Attorney General’s Office of the Slovak Republic as well as to the Tax Authorities ans the Anti~~concerning forward-~~Corruption~~looking ~~Police~~statements ~~Force of the Slovak Republic relevant information of the matter and have requested an investigation into the illegal – and~~ in ~~the~~this ~~opinion~~report of the Company, EuroGas GmbH and Rozmin – corrupt practices by Slovak government officials. The European Commission in Brussels and the Anti-Corruption Police Force have advised the Company that they have forwarded the relevant informations independently to their own investigative agencies for an independent investigation.

~~Acquisition~~ Certain ~~Terms~~statements in this report constitute "forward-looking statements" within the meaning of ~~McCallan~~the ~~Oil~~rules &and regulations ~~Gas~~promulgated ~~(UK)~~by ~~Ltd~~the SEC. ~~shares:~~Those forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed above, that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, among other things, our lack of revenue and our substantial net losses and accumulated deficit, as well as the continuing uncertainty of profitability, the highly competitive industry in which we operate, changes in or failure to comply with governmental regulation, the uncertainty of third party reimbursement for our products, general economic and business conditions and other factors referenced above.

~~EuroGas~~Item ~~has~~3 ~~purchased~~Quantitative ~~Mr. Dietmann's 30% interest by issuing 20.000.000 restricted EuroGas, Inc. common shares, as well as 1.000.000 non-voting~~ and ~~non~~Qualitative ~~interest~~Disclosures ~~bearing~~about ~~Series 2008 Preferred Shares with certain Net Profit Interest ("NPI") rights~~Market attached to it. As part of the transaction, Mr. Dietmann agreed to a lock-up agreement which prohibits him from selling or transferring these shares for a period of three years without EuroGas' consent. Risk

In The ~~addition,~~Company ~~EuroGas~~conducts ~~has~~business ~~the~~in many ~~right~~foreign tocurrencies. ~~force~~As ~~conversion~~a result of the ~~Preferred~~effects ~~Shares~~that ~~with~~foreign ~~the~~exchange ~~NPI,~~rate movements ~~together~~of ~~with~~those ~~Mr.~~currencies ~~Dietmann~~have on the Company's ~~remaining~~costs ~~25%~~and ~~shareholding~~on ~~interest~~the incash ~~McCallan~~flows, which ~~once~~it receives from its foreign operations, the ~~share~~Company ~~price~~is ofsubject to foreign exchange rate risks. The Company believes that it currently has no other material market risk exposure. To date, the ~~company~~Company has ~~traded~~addressed atits $2foreign currency exchange rate risks principally by maintaining its liquid assets in U.50S. ~~per~~dollars ~~share~~until ~~for~~payments ain foreign currency are required, but the Company ~~period~~does ofnot 20reduce ~~consecutive~~this ~~days~~risk by utilizing hedging activities.

Item If4 ~~EuroGas~~Controls common stock closes at $2.50 per share for 20 consecutive trading days in 2009 or until May 31, 2011 EuroGas will issue 15.000.000 restricted common shares to Mr. Dietmann for his remaining stake in McCallan. In the event that EuroGas common stock doesn't close at $2.50 for twenty consecutive trading days from now until May 31, 2011, Mr. Dietmann will be allowed to retain his 25% stake in McCallan along with the Preferred Stock and ~~associated~~Procedures ~~NPI.~~

~~Item~~ Based 3.on ~~Exhibits~~their ~~and~~evaluation, ~~Reports~~as onof a date within 90 days of the filing date of this Form 810-KQ, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rule 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended) are effective. There have been no significant changes in internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

~~(a) The following exhibits are filed with this report were filed during the previous reporting schedules as noted below.~~ 17

Exhibit
Number	Title of Document	Location
2.1	Exchange Agreement between Northampton, Inc., and Energy Global, A.G.	Report on Form 8-K dated August 3, 1994, Exhibit No. 1*
2.2	Agreement and Plan of Merger between EuroGas, Inc., and Danube International Petroleum Company, Inc., dated July 3, 1996, as amended	Report on Form 8-K dated July 12, 1996, Exhibit No. 5*
2.3	English translation of Transfer Agreement between EuroGas and OMV, Inc. for the Acquisition of OMV (Yakut) Exploration GmbH dated June 11, 1997	Report on Form 8-K dated June 11, 1997 Exhibit No. 1*
2.4	Asset Exchange Agreement between EuroGas, Inc., and Beaver River Resources, Ltd., dated April 1, 1988	Report on Form S-1 dated July, 23, 1998 Exhibit No. 2.03*
3.1	Articles of Incorporation	Registration Statement on Form S- 18, File No. 33-1381-D Exhibit No. 1*
3.2	Amended Bylaws	Annual Report on Form 10-K for the fiscal year ended September 30, 1990, Exhibit No. 1*
3.3	Designation of Rights, Privileges, and Preferences of 1995 Series Preferred Stock	Quarterly Report on Form 10-QSB dated March 31, 1995, Exhibit No. 1*
3.4	Designation of Rights, Privileges, and Preferences of 1996 Series Preferred Stock	Report on Form 8-K dated July 12, 1996, Exhibit No. 1*
3.5	Designation of Rights, Privileges, and Preferences 1997 Series A Convertible Preferred Stock	Report on Form 8-K dated May 30, 1997 Exhibit No. 1*
3.6	Designation of Rights, Privileges, and Preferences of 1998 Series B Convertible Preferred Stock	Report on Form S-1 Dated July 23, 1998 Exhibit No. 3.06*
3.7	Articles of Share Exchange	Report on Form 8-K dated August 3, 1994, Exhibit No. 6*

PART II - OTHER INFORMATION

Exhibit
Number	Title of Document	Location
3.8	Designation of Rights, Privileges, and Preferences of 1999 Series C 6% Convertible Preferred Stock	Registration Statement on Form S-1, File No. 333-92009, filed on December 2, 1999
4.1	Subscription Agreement between EuroGas, Inc., and Thomson Kernaghan & Co., Ltd., dated May 29, 1998	Report on Form S-1 dated July 23, 1998 Exhibit No. 4.01*
4.2	Warrant Agreement dated July 12, 1996, with Danube Shareholder	Report on Form 8-K dated July 12, 1996, Exhibit No. 2*
4.3	Registration Rights Agreement Between EuroGas, Inc., and Thomson Kernaghan & Co., Ltd., dated May 29, 1998	Report on Form S-1 dated July 23, 1998 Exhibit No. 4.02*
4.4	Registration Rights Agreement dated July 12, 1996, with Danube Shareholder	Report on Form 8-K dated July 12, 1996 Exhibit No. 3*
4.5	Registration Rights Agreement by and among EuroGas, Inc., and Finance Credit & Development Corporation, Ltd., dated June 30, 1997	Report on Form S-1 dated July 23, 1998 Exhibit No. 4.06*
4.6	Option granted to the Trustees of the Estate of Bernice Pauahi Bishop	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 10*
4.7	Registration Rights Agreement by and among EuroGas, Inc., and Kukui, Inc., and the Trustees of the Estate of Bernice Pauahi Bishop	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 11*
4.8	Option issued to OMV Aktiengesellschaft to acquire up to 2,000,000 shares of restricted common stock	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1996, Exhibit No. 13*
4.9	Form of Convertible Debenture issued on January 12, 2000.	Quarterly report on Form 10-Q dated March 31, 2000.
10.1	English translation of Mining Usufruct Contract between The Minister of Environmental Protection, Natural Resources and Forestry of the Republic of Poland and Pol- Tex Methane, dated October 3, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 1*
10.2	Agreement between Polish Oil and Gas Mining Joint Stock Company and EuroGas, Inc., dated October 23, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 2*
10.3	1996 Stock Option and Award Plan	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 14*

Item 1 Legal Proceedings

Exhibit
Number	Title of Document	Location
10.4	Settlement Agreement by and among Kukui, Inc., and Pol- Tex Methane, Sp. zo.o., McKenzie Methane Rybnik, McKenzie Methane Jastrzebie, GlobeGas, B.V. (formerly known as McKenzie Methane Poland, B.V.), and the Unsecured Creditors' Trust of the Bankruptcy Estate of McKenzie Methane Corporation	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 15*
10.5	Acquisition Agreement between EuroGas, Inc., and Belmont Resources, Inc., dated July 22, 1998	Report on Form S-1 dated July 23, 1998 Exhibit No. 10.20*
10.6	General Agreement governing the operation of McKenzie Methane Poland, B.V.	Report on Form 8-K dated August 3, 1994, Exhibit No. 2*
10.7	Concession Agreement between Ministry of Environmental Protection, Natural Resources, and Forestry and Pol-Tex Methane Ltd.	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 18*
10.8	Association Agreement between NAFTA a.s. Gbely and Danube International Petroleum Company	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 19*
10.9	Agreement between Moravske' Naftove' Doly a.s. and Danube International Petroleum Company	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 20*
10.10	Form of Convertible Debenture	Report on Form 8-K dated August 3, 1994, Exhibit No. 7*
10.11	Form of Promissory Note, as amended, with attached list of shareholders	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 23*
10.12	Amendment #1 to the Association Agreement Entered on 13th July 1995, between NAFTA a.s. Gbely and Danube International Petroleum Company	Annual Report on Form 10-KSB for the Fiscal year ended December 31, 1996, Exhibit No. 25*
10.13	Acquisition Agreement by and among Belmont Resources, Inc., EuroGas Incorporated, dated October 9, 1998	Form 10-Q Dated September 30, 1998 Exhibit No. 1*
10.14	Letter of Intent by and between Polish Oil and Gas Company and Pol-Tex Methane, dated April 28, 1997	Annual Report on Form 10-KSB for the Fiscal year ended December 31, 1996, Exhibit No. 27*

Judgment EuroGas Texas Corp.

Exhibit
Number	Title of Document	Location
10.15	Purchase and Sale Agreement between Texaco Slask Sp. zo.o., Pol-Tex Methane Sp. zo.o. and GlobeGas B.V.	Report on Form 8-K Dated March 24, 1997 Exhibit No. 1*
10.16	English translation of Articles of Association of the TAKT Joint Venture dated June 7, 1991, as amended April 4, 1993	Report on Form 8-K/A Dated June 11, 1997 Exhibit No. 3*
10.17	English translation of Proposed Exploration and Production Sharing Contract for Hydrocarbons between the Republic of Sakha (Yakutia) and the Russian Federation and the TAKT Joint Venture	Report on Form 8-K/A Dated June 11, 1997 Exhibit No. 4*
10.18	English translation of Agreement on Joint Investment and Production Activities between EuroGas, Inc., and Zahidukrgeologia, dated May 14, 1998	Registration Statement on Form S-1 dated July 23, 1998 Exhibit No. 10.21*
10.19	English translation of Statutory Agreement of Association of Limited Liability Company with Foreign Investments between EuroGas, Inc., and Makyivs'ke Girs'ke Tovarystvo, dated June 17, 1998	Registration Statement on Form S-1 dated July 23, 1998 Exhibit No. 10.22*
10.20	Partnership Agreement between EuroGas, Inc., and RWE- DEA Aktiengesellschaft for Mineraloel and Chemie AG, date July 22, 1998	Amendment No. 1 to Registration Statement on Form S-1 dated August 3, 1998 Exhibit No. 10.23
10.21	Mining Usufruct Contract between The Minister of Environmental Protection, Natural Resources and Forestry of the Republic of Poland and Pol-Tex Methane, dated October 3, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 1*
10.22	Agreement between Polish Oil and Gas Mining Joint Stock Company and EuroGas, Inc., dated October 23, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 2*
10.23	Agreement for Acquisition of 5% Interest in a Subsidiary by and between EuroGas, Inc., B. Grohe, and T. Koerfer, dated November 11, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 3*
10.24	Option Agreement by and between EuroGas, Inc., and Beaver River Resources, Ltd., dated October 31, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 4*
10.25	Lease Agreement dated September 3, 1996, between Potomac Corporation and the Company; Letter of Amendment dated September 30, 1999.	Registration Statement on Form S-1, File No. 333-92009, filed on December 2, 1999*
10.26	Sublease dated November 2, 1999, between Scotdean Limited and the Company	Registration Statement on Form S-1, File No. 333-92009, filed onDecember 2, 1999*

EuroGas, Inc. has been notified by Texas Euro Gas Corp., a Houston, Texas based private company (The “independent party”), that it has purchased the Judgment against EuroGas, Inc. and others in the original amount of $113 Million, plus accrued interest thereon. The Judgment against the Company et. al. was originally obtained in the South Texas Bankruptcy Court by the Bankruptcy Trustee of the McKenzie estate, Trustee Steve Smith of Houston, Texas in 2004. The independent party has received an assignment of the Judgment from Trustee Smith on September 24, 2007 after the Honorable Judge Brown of the South Texas Bankruptcy Court approved the sale of the Judgment on August 22, 2007 by Court Order. Trustee Smith had forced EuroGas, Inc. into involuntary bankruptcy (Chapter 7) in the fall of 2004 and EuroGas, Inc.’s remaining assets were sold at public auction in March 2006 in Salt Lake City, Utah. The involuntary bankruptcy of EuroGas, Inc. was closed and terminated by Court Order of the Utah Bankruptcy Court in February 2007.

Exhibit
Number	Title of Document	Location
10.27	Securities Purchase Agreement dated November 4, 1999, between the Company and Arkledun Drive LLC	Registration Statement on Form S-1, File No. 333-92009, filed on December 2, 1999*
10.28	Registration Rights Agreement dated November 4, 1999, between the Company and Arkledun Drive LLC	Registration Statement on Form S-1, File No. 333-92009, filed on December 2, 1999*
10.29	Supplemental Agreement dated November 4, 1999, between the Company and Arkledun Drive LLC	Registration Statement on Form S-1, File No. 333-92009, filed on December 2, 1999*
10.30	Executive Employment Agreement dated April 20, 1999 between the Company and Karl Arleth	Registration Statement on Form S-1, File No. 333-92009, filed on December 2, 1999*
10.31	Settlement Agreement dated June 16, 2000, between the Company and FCOC	Form 10-K for year ended December 31, 2000*
10.32	Securities Purchase Agreement dated October 2, 2000, between the Company and Arkledun Drive LLC	Form 10-K for year ended December 31, 2000*
10.33	Registration Rights Agreement dated October 2, 2000, between the Company and Arkledun Drive LLC	Form 10-K for year ended December 31, 2000*
10.34	Settlement Agreement dated November 14, 2000, between the Company and Arkledun Drive LLC	Form 10-K for year ended December 31, 2000*
10.35	Consulting Agreement dated September 18, 2000, between the Company and Spinneret Financial Systems, Ltd.	Form 10-K for year ended December 31, 2000*
10.36	Securities Purchase Agreement dated March 27, 2001 between the Company and Belmont Resources Inc.	Form 10-K for year ended December 31, 2000*
10.37	Agreement dated April 9, 2001 between the Company and Belmont Resources Inc.	Form 10-K for year ended December 31, 2000*
10.38	Warrant Agreement dated September 8, 2000 with Oxbridge Limited	Form 10-K for year ended December 31, 2000*
10.39	Warrant Agreement dated September 8, 2000 with Rockwell International Ltd.	Form 10-K for year ended December 31, 2000*
10.40	Warrant Agreement dated September 8, 2000 with Conquest Financial Corporation	Form 10-K for year ended December 31, 2000*
10.41	Termination and Transfer Agreement dated June 23, 2000 between the Company and Belmont Resources, Inc.	Form 10-K for year ended December 31, 2000*
10.42	Loan Agreement dated March 3, 1999 between the Company and Pan Asia Mining Corp.	Form 10-K for year ended December 31, 2000*

The independent party, Texas EuroGas Corp., paid $1.6 million US cash to the McKenzie Bankruptcy Trustee as specified and approved by the August 22, 2007 Court Order of the South Texas Bankruptcy Court. The independent party has also informed the Company that it will not seek legal redress towards the Company and others after having obtained the Judgment and is prepared to negotiate with the Company and others to redeem the Judgment.

Exhibit
Number	Title of Document	Location
10.43	Agreement dated July 14, 2000 between the Company and Oxbridge Limited	Form 10-K for year ended December 31, 2000*
10.44	Amended Agreement dated July 25, 2000 between the Company, Pan Asia Mining Corp., and Oxbridge Limited	Form 10-K for year ended December 31, 2000*
10.45	Settlement Agreement dated November 20, 2000 between the Company and Beaver River Resources, Ltd.	Form 10-K for year ended December 31, 2000*
10.46	Purchase of Judgment from Texas Bankruptcy Trustee on October 10. 2007/	Form 8-K filed on October 10,2007. *
10-47	EuroGas, Inc. address change. December 31, 2007	Form 8-K filed on December 31,2007. *
10-48	EuroGas, Inc. New Director appointed March 5, 2008	Form 8-K filed on March 5, 2008 *
10-49	2008 EuroGas, Inc. Regent Ventures May 1,2008	Form 8-K filed on May 1,2008. *
10-50	EuroGas, Inc. McCallan oil & gas (UK) limited. May 29, 2008	Form 8-K filed on May 29, 2008. *
10-51	2008 EuroGas, Inc. Ed Mueller appointed as director and address change for Company August 25,2008	Form 8-K filed on August 25, 2008exhibit 10-51 10 Q 3d Quarter 2008*
21.1	Subsidiaries	Annual Report on Form 10- KSB for the Fiscal year ended December 31, 1995, Exhibit No. 24*
31.1	Certification of Principal Executive Officer	Filed herewith
31.2	Certification of Principal Financial Officer	Filed herewith
32.1	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.2	Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002	Filed herewith

*The ~~Incorporated~~entire financing of the purchase of the Judgment by ~~reference~~Texas EuroGas Corp. from the Bankruptcy Trustee Steve Smith, as well as all the costs involved related to the purchase of the judgment by Texas EuroGas Corporation, was entirely financed by Mr. Dietmann, who provided approx. $800,000 cash, and by the CEO of EuroGas Inc., Mr. Wolfgang Rauball, who provided approx. $1,125,000 cash.

~~SIGNATURES~~Although Mr. Dietmann had indicated in writing to settle the judgment issue with the Company, the Trustee for Mr. Dietmann, Mr David Sacks, still has not transferred ownership of Texas EuroGas Corp. into Mr. Dietmann’s name, although agreed to in writing by Mr. Sacks in summer 2008, as Mr. Sacks was asking for further financial renumeration. Therefore the judgment could not have been settled with EuroGas Inc. yet.

~~Pursuant~~In order to ~~the~~solve ~~requirements~~this ofproblem Mr. Dietmann and Mr. Wolfgang ~~the~~Rauball ~~Securities~~have ~~Exchange~~entered ~~Act~~into ofan ~~1934,~~agreement ~~the~~with ~~registrant~~EuroGas ~~has~~Inc. ~~duly~~in ~~caused~~October ~~this~~2009 ~~report~~and tohave betransferred ~~signed~~all ontheir ~~its~~respective ~~behalf~~rights byof ownership and their respective receivables in connection with their financing of Texas EuroGas Corporation and the ~~undersigned~~purchase ~~thereunto~~of ~~duly~~the ~~authorized~~judgment from Trustee Smith, incl. accrued interest thereon, to the Company.

	EUROGAS, INC.
	(Registrant)
Date: March 1, 2010	By	/s/ Wolfgang Rauball
		Wolfgang Rauball
		Chief Executive Officer
Date: March 1, 2010	By	/s/ Harald Schmidt
		Harald Schmidt
		Executive Vice President
		Interim Accounting and Financial Officer

In addition to the financing of the purchase of the $113 million judgment from Trustee Smith in September 2007 by the Company’s CEO Mr. Wolfgang Rauball and Mr. Dietmann, Trustee Smith had obtained a second judgment against the company in early 2009 in a different case in the amount of appr. $125,000 plus accrued interest and had threatened to start again legal procedures to reopen Bankruptcy proceedings under Chapter 7 against the Company. On April 30, 2009 Mr. Dietmann has also bought this judgment from Trustee Smith and has also assigned his receivable for this second judgment to the Company.

For the transfer of the rights of ownership and the respective receivables, including accrued interest and costs since 2007, the company agreed to reimburse Mr. Dietmann $950,000 and Mr. Wolfgang Rauball $1,600,000. The loan accounts of Mr. Dietmann and Mr. Rauball were credited with these amounts in October 2009.

Mr. Wolfgang Rauball and Dr. Reinhard Rauball have paid a lump sum of $100,000 each in favor of the company to release both gentlemen from any claims under the Judgment to be held by the company.

The formal transfer of the ownership of EuroGas Texas Ltd. to the company has not taken place as of March 31, 2010. The final payment for Mr.Sacks’ services is shown as an accrued liability in favour of Mr. Sacks with an estimated amount of $300,000. Mr. Sacks had already received $300,000 cash in May 2008 from Mr. Dietmann for his services in 2007/ 2008.

Spencer Clarke

Spencer Clarke, a New York based Investment House is claiming $375,000 in unpaid consulting fees from the company under a consulting agreement between Spencer Clarke and the company dated January 2, 2008.

The company has rejected the claim alleging that Spencer Clarke had not provided any services to the company since summer 2008 and is countersuing Spencer Clarke for a nominal amount of $1,000,000 for failure to provide services in the closing of a valuable Ukrainian CBM concession, which had been brought to the attention of the company earlier by a client of Spencer Clarke.

In addition Spencer Clarke has acted as investment consultant on the Regent transaction to purchase the 45 % interest in McCallan from Regent Ventures Ltd. (see ITEM 1 Activities in the United Kingdom) and the company has agreed to issue 1 Million restricted shares of common stock as consulting fee to Spencer Clarke on the closing of the acquisition. The shares are subject to an internal settlement between Spencer Clarke and its former employee Ira Rubenstein, who had arranged and negotiated the sale.

Spencer Clarke and the company had agreed to settle the lawsuit for a nominal $100,000 and to deposit the shares in Trust. However, Spencer Clarke’s solicitor rejected the settlement and demanded a higher cash amount and insisted on the delivery of the 1 Million shares of common stock of the company.

The company has advised its solicitor to go back to court.

Item 1 A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds          None

Item 3. Defaults Upon Senior Securities                                                            None

Item 4.

Item 5. Other Information                                                                                      None

Item 6. Exhibits

Exhibit
Number	Title of Document	Location

2.1	Exchange Agreement between Northampton, Inc., and Energy Global, A.G.	Report on Form 8-K dated August 3, 1994, Exhibit No. 1*

2.2	Agreement and Plan of Merger between EuroGas, Inc., and Danube International Petroleum Company, Inc., dated July 3, 1996, as amended	Report on Form 8-K dated July 12, 1996, Exhibit No. 5*

2.3	English translation of Transfer Agreement between EuroGas and OMV, Inc. for the Acquisition of OMV (Yakut) Exploration GmbH dated June 11, 1997	Report on Form 8-K dated June 11, 1997 Exhibit No. 1*

2.4	Asset Exchange Agreement between EuroGas, Inc., and Beaver River Resources, Ltd., dated April 1, 1988	Report on Form S-1 dated July, 23, 1998 Exhibit No. 2.03*

3.1	Articles of Incorporation	Registration Statement on Form S-18, File No. 33- 1381-D Exhibit No. 1*

3.2	Amended Bylaws	Annual Report on Form 10-K for the fiscal year ended September 30, 1990, Exhibit No. 1*

3.3	Designation of Rights, Privileges, and Preferences of 1995 Series Preferred Stock	Quarterly Report on Form 10-QSB dated March 31, 1995, Exhibit No. 1*

3.4	Designation of Rights, Privileges, and Preferences of 1996 Series Preferred Stock	Report on Form 8-K dated July 12, 1996, Exhibit No. 1*

3.5	Designation of Rights, Privileges, and Preferences 1997 Series A Convertible Preferred Stock	Report on Form 8-K dated May 30, 1997 Exhibit No. 1*

3.6	Designation of Rights, Privileges, and Preferences of 1998 Series B Convertible Preferred Stock	Report on Form S-1 Dated July 23, 1998 Exhibit No. 3.06*

3.7	Articles of Share Exchange	Report on Form 8-K dated August 3, 1994, Exhibit No. 6*

3.8	Designation of Rights, Privileges, and Preferences of 1999 Series C 6% Convertible Preferred Stock	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

4.1	Subscription Agreement between EuroGas, Inc., and Thomson Kernaghan & Co., Ltd., dated May 29, 1998	Report on Form S-1 dated July 23, 1998 Exhibit No. 4.01*

4.2	Warrant Agreement dated July 12, 1996, with Danube Shareholder	Report on Form 8-K dated July 12, 1996, Exhibit No. 2*

4.3	Registration Rights Agreement Between EuroGas, Inc., and Thomson Kernaghan & Co., Ltd., dated May 29, 1998	Report on Form S-1 dated July 23, 1998 Exhibit No. 4.02*

Exhibit
Number	Title of Document	Location

4.4	Registration Rights Agreement dated July 12, 1996, with Danube Shareholder	Report on Form 8-K dated July 12, 1996 Exhibit No. 3*

4.5	Registration Rights Agreement by and among EuroGas, Inc., and Finance Credit & Development Corporation, Ltd., dated June 30, 1997	Report on Form S-1 dated July 23, 1998 Exhibit No. 4.06*

4.6	Option granted to the Trustees of the Estate of Bernice Pauahi Bishop	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 10*

4.7	Registration Rights Agreement by and among EuroGas, Inc., and Kukui, Inc., and the Trustees of the Estate of Bernice Pauahi Bishop	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 11*

4.8	Option issued to OMV Aktiengesellschaft to acquire up to 2,000,000 shares of restricted common stock	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1996, Exhibit No. 13*

4.9	Form of Convertible Debenture issued on January 12, 2000.	Quarterly report on Form 10-Q dated March 31, 2000.

10.1	English translation of Mining Usufruct Contract between The Minister of Environmental Protection, Natural Resources and Forestry of the Republic of Poland and Pol-Tex Methane, dated October 3, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 1*

10.2	Agreement between Polish Oil Gas Mining Joint Stock Company and EuroGas,Inc., dated October 23, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 2

10.3	1996 Stock Option and Award Plan	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 14*

10.4	Settlement Agreement by and among Kukui, Inc., and Pol-Tex Methane, Sp. zo.o., McKenzie Methane Rybnik, McKenzie Methane Jastrzebie, GlobeGas, B.V. (formerly known as McKenzie Methane Poland, B.V.), and the Unsecured Creditors’ Trust of the Bankruptcy Estate of McKenzie Methane Corporation	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 15*

10.5	Acquisition Agreement between EuroGas, Inc., and Belmont Resources, Inc., dated July 22, 1998	Report on Form S-1 dated July 23, 1998 Exhibit No. 10.20*

10.6	General Agreement governing the operation of McKenzie Methane Poland, B.V.	Report on Form 8-K dated August 3, 1994, Exhibit No. 2*

10.7	Concession Agreement between Ministry of Environmental Protection, Natural Resources, and Forestry and Pol-Tex Methane Ltd.	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 18*

Exhibit
Number	Title of Document	Location

10.8	Association Agreement between NAFTA a.s. Gbely and Danube International Petroleum Company	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 19*

10.9	Agreement between Moravske’ Naftove’ Doly a.s. and Danube International Petroleum Company	Annual Report on Form 10-KSB for the Fiscal year Ended December 31, 1995, Exhibit No. 20*

10.10	Form of Convertible Debenture	Report on Form 8-K dated August 3, 1994, Exhibit No. 7*

10.11	Form of Promissory Note, as amended, with attached list of shareholders	Annual Report on Form 10-KSB for the fiscal year ended December 31, 1995, Exhibit No. 23*

10.12	Amendment #1 to the Association Agreement Entered on 13th July 1995, between NAFTA a.s. Gbely and Danube International Petroleum Company	Annual Report on Form 10-KSB for the Fiscal year ended December 31, 1996, Exhibit No. 25*

10.13	Acquisition Agreement by and among Belmont Resources, Inc., EuroGas Incorporated, dated October 9, 1998	Form 10-Q Dated September 30, 1998 Exhibit No. 1*

10.14	Letter of Intent by and between Polish Oil and Gas Company and Pol-Tex Methane, dated April 28, 1997	Annual Report on Form 10-KSB for the Fiscal year ended December 31, 1996, Exhibit No. 27*

10.15	Purchase and Sale Agreement between Texaco Slask Sp. Z.o.o., Pol-Tex Methane Sp. Z.o.o. and GlobeGas B.V.	Report on Form 8-K Dated March 24, 1997 Exhibit No. 1*

10.17	English translation of Proposed Exploration and Production Sharing Contract for Hydrocarbons between the Republic of Sakha (Yakutia) and the Russian Federation and the TAKT Joint Venture	Report on Form 8- K/A Dated June 11, 1997 Exhibit No. 4*

10.18	English translation of Agreement on Joint Investment and Production Activities between EuroGas, Inc., and Zahidukrgeologia, dated May 14, 1998	Registration Statement on Form S-1 dated July 23, 1998 Exhibit No. 10.21*

10.19	English translation of Statutory Agreement of Association of Limited Liability Company with Foreign Investments between EuroGas, Inc., and Makyivs’ke Girs’ke Tovarystvo, dated June 17, 1998	Registration Statement on Form S-1 dated July 23, 1998 Exhibit No. 10.22*

10.20	Partnership Agreement between EuroGas, Inc., and RWE-DEA Aktiengesellschaft for Mineraloel and Chemie AG, date July 22, 1998	Amendment No. 1 to Registration Statement on Form S-1 dated August 3, 1998 Exhibit No. 10.23

10.21	Mining Usufruct Contract between The Minister of Environmental Protection, Natural Resources and Forestry of the Republic of Poland and Pol- Tex Methane, dated October 3, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 1*

Exhibit
Number	Title of Document	Location

10.22	Agreement between Polish Oil and Gas Mining JointStock Company and EuroGas, Inc., dated October 23, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 2*

10.23	Agreement for Acquisition of 5% Interest in a Subsidiary by and between EuroGas, Inc., B. Grohe, and T. Koerfer, dated November 11, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 3*

10.24	Option Agreement by and between EuroGas, Inc., and Beaver River Resources, Ltd., dated October 31, 1997	Quarterly Report on Form 10-Q dated September 30, 1997 Exhibit No. 4*

10.25	Lease Agreement dated September 3, 1996, between Potomac Corporation and the Company; Letter of Amendment dated September 30, 1999.	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

10.26	Sublease dated November 2, 1999, between Scotdean Limited and the Company	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

10.27	Securities Purchase Agreement dated November 4, 1999, between the Company and Arkledun Drive LLC	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

10.28	Registration Rights Agreement dated November 4, 1999, between the Company and Arkledun Drive LLC	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

10.29	Supplemental Agreement dated November 4, 1999, between the Company and Arkledun Drive LLC	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

10.30	Executive Employment Agreement dated April 20, 1999 between the Company and Karl Arleth	Registration Statement on Form S-1, File No. 333- 92009, filed on December 2, 1999

10.31	Settlement Agreement dated June 16, 2000, between the Company and FCOC	Form 10-K for year ended December 31, 2000

10.32	Securities Purchase Agreement dated October 2, 2000, between the Company and Arkledun Drive LLC	Form 10-K for year ended December 31, 2000

10.33	Registration Rights Agreement dated October 2, 2000, between the Company and Arkledun Drive LLC	Form 10-K for year ended December 31, 2000

10.34	Settlement Agreement dated November 14, 2000, between the Company and Arkledun Drive LLC	Form 10-K for year ended December 31, 2000

10.35	Consulting Agreement dated September 18, 2000, between the Company and Spinneret Financial Systems, Ltd.	Form 10-K for year ended December 31, 2000

10.36	Securities Purchase Agreement dated March 27, 2001 between the Company and Belmont Resources Inc.	Form 10-K for year ended December 31, 2000

Exhibit
Number	Title of Document	Location

10.37	Agreement dated April 9, 2001 between the Company and Belmont Resources Inc.	Form 10-K for year ended December 31, 2000

10.38	Warrant Agreement dated September 8, 2000 with Oxbridge Limited	Form 10-K for year ended December 31, 2000

10.39	Warrant Agreement dated September 8, 2000 with Rockwell International Ltd.	Form 10-K for year ended December 31, 2000

10.40	Warrant Agreement dated September 8, 2000 with Conquest Financial Corporation	Form 10-K for year ended December 31, 2000

10.41	Termination and Transfer Agreement dated June 23, 2000 between the Company and Belmont Resources, Inc.	Form 10-K for year ended December 31, 2000

10.42	Loan Agreement dated March 3, 1999 between the Company and Pan Asia Mining Corp.	Form 10-K for year ended December 31, 2000

10.43	Agreement dated July 14, 2000 between the Company and Oxbridge Limited	Form 10-K for year ended December 31, 2000

10.44	Amended Agreement dated July 25, 2000 between the Company, Pan Asia Mining Corp., and Oxbridge Limited	Form 10-K for year ended December 31, 2000

10.45	Settlement Agreement dated November 20, 2000 between the Company and Beaver River Resources, Ltd.	Form 10-K for year ended December 31, 2000

10.46	Purchase of Judgment from Texas Bankruptcy Trustee on October 10. 2007/	Form 8-K filed on October 10,2007 *

10.47	EuroGas, Inc. address change December 31, 2007	Form 8-K filed on December 31,2007 *

10.48	Amended and Restated Bylaws dated April 27,2009	Form 8- K filed on June 10,2009 Exhibit No. 3.1

10.49	Share Option agreement dated April 22, 2008,between the Registrant and Regent ventures Ltd.	Form 8- K filed on June 10,2009 Exhibit No. 10.1

10.50	Amending agreement dated November 3, 2008 between the registrant and Regent Ventures Ltd,	Form 8- K filed on June 10,2009 Exhibit No. 10.2

10.51	April 2,2009 Option Agreement between the registrant and Rio Plata Exploration & Mining Inc. with respect to the 60 % acquisition of the Tombstone Sandwich Claims.	Form 8- K filed on June 10,2009 Exhibit No. 10.3

10.52	April 2, 2009 Option Agreement between the registrant and Rio Plata Exploration & Mining Inc. with respect to the 40 % acquisition of the Tombstone Sandwich Claims.	Form 8- K filed on June 10,2009 Exhibit No. 10.4

Exhibit
Number	Title of Document	Location

10.53	April 2, 2009 Assignment Agreement between the registrant and Henry & Munroe, LLC.	Form 8- K filed on June 10,2009 Exhibit No. 10.5

10.54	April 2, 2009 Option Agreement between the registrant, Rio Plata Exploration & Mining Inc. and Piejo Partners, Inc.	Form 8- K filed on June 10,2009 Exhibit No. 10.6

10.55	August 1, 2008 Consulting Agreement between the registrant and Goette Financial Consulting Ltd.	Form 8- K filed on June 10,2009 Exhibit No. 10.7

10.56	Warrant dated June 10, 2004 in favour of Wolfgang Rauball	Form 8- K filed on June 10,2009 Exhibit No. 10.8

10.57	Warrant dated March 39, 2009 in favour of Wolfgang Rauball	Form 8- K filed on June 10,2009 Exhibit No. 10.9

10.58	Warrant dated March 30, 2009 in favour of Herbert Zimmer	Form 8- K filed on June 10,2009 Exhibit No. 10.10

10.59	2006 Stock Option Plan	Form 8- K filed on June 10,2009 Exhibit No.10.11

10.60	Code of ethics and Business conduct dated April 27, 2009	Form 8- K filed on June 10,2009 Exhibit No. 14.1

10.61	News release dated April 23, 2009	Form 8- K filed on June 10,2009 Exhibit No. 99.1

21.1	Annual Report on Form 10-KSB for the Fiscal year ended December 31, 1995, Exhibit No. 24*

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed Herewith

31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed Herewith

32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed Herewith

32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed Herewith

Incorporated by reference

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EUROGAS, INC.
	(Registrant)


	By	/s/ Wolfgang Rauball
		Wolfgang Rauball
		Chief Executive Officer


	By	/s Harald Schmidt
		Harald Schmidt
		Interim Financial Officer

DATE: June 29, 2010

Filing Compare · EUROGAS INC