The December 20, 2007 tripartite agreement among Castor Limited Partnership (CLP), ACS Servicios Comunicaciones y Energis, S.L. (ACS) and Enagas enabled Eurogas to secure participation in the Castor project by ACS, the largest construction company in Spain, as well as Enagas, Spain's largest natural gas transportation and distribution company. Eurogas initially became involved with ACS in October 2006 when ACS was selected to undertake the FEED study and took a 5% equity position in Escal UGS.

The highlights of the tripartite agreement are:

• CLP, ACS and Enagas will each hold 33.3% of Escal. ACS will take the lead in managing the project. Eurogas owns 73.7% of CLP and will therefore have a 24.6% indirect, non-operated interest in the Castor Project.
• ACS will repay to CLP approximately $40 million, which is most of CLP's prior investment in the Castor Project.
• ACS will be responsible for the funding of the Castor project, including providing all required guarantees. CLP will not be required to provide any equity or debt funds nor any warranties required by project finance lenders, nor to provide any bridge financing.
• The Spanish staff of Escal remains in place and serves as the project's technical experts and administrators. The Spanish staff will continue to run the project at the direction of ACS, and ACS will provide additional expertise as needed.

Given its long background in conceiving and technically proving up the Castor project, Eurogas will continue to supply technical expertise in the areas of geology, geophysics and drilling/completions of wells.