Lexington, Ky., Jan. 5 /PRNewswire-FirstCall/ - Daugherty Resources, Inc.
(Nasdaq: NGAS) today announced a $5,865,000 equity infusion by institutional
investors. The Company issued a total of 1,303,335 shares of its common stock
to the investors at $4.50 per share, based on the stock's market price when an
agreement in principal for the transaction was reached. The newly issued
equity increased the Company's total common stock currently outstanding to
12,079,365 shares.
"Our operating and financial performance this year, together with
continuing strength in natural gas prices, have generated opportunities for
attracting additional capital to finance our continuing growth," said
William S. Daugherty, President and CEO. "We plan to use the proceeds from
this private placement to fund part of our 2004 production acquisition program
and pipeline construction initiatives in our core operating areas in the
Appalachian Basin."
The private placement was covered by a Securities Purchase Agreement dated
as of December 31, 2003. Under the purchase agreement, the investors also
received three-year warrants to purchase up to 391,000 additional common
shares at an exercise price of $5.65 per share. The purchase agreement
provides for the Company to register the newly issued shares and any shares
purchased under the warrants for resale on behalf the investors.
Investment banking services for the transaction were provided to the
Company by The Shemano Group, Inc., headquartered in San Francisco,
California. The Shemano Group received a 7% fee and a five-year warrant to
purchase up to 50,830 shares of the Company's common stock at $5.65 per share.
Daugherty Resources is a natural resources company focused on natural gas
development drilling and reserve growth. Based in Lexington, Kentucky, the
Company specializes on developing geological prospects concentrated in the
Appalachian Basin. Additional information about the Company is available at
its website, http://www.ngas.com .
This Release includes forward looking statements within the meaning of
Section 21E of the Securities Exchange Act relating to matters such as
anticipated operating and financial performance, business prospects,
developments and results of the company. Actual performance, prospects,
developments and results may differ materially from anticipated results due to
economic conditions and other risks, uncertainties and circumstances partly or
totally outside the control of the company, including risks of production
variances from expectations, volatility of product prices, the level of
capital expenditures required to fund drilling operations and the ability of
the company to implement its business strategy. These and other risks are
described in the company's periodic reports filed with the United States
Securities and Exchange Commission.
SOURCE Daugherty Resources, Inc.
 back to top
Related links:
http://www.ngas.com
CONTACT:
William S. Daugherty, President and CEO of
Daugherty Resources, Inc., +1-859-263-3948, or fax,
+1-859-263-4228, or email, ngas@ngas.com
|
