LEXINGTON, Ky., Jan. 7 /PRNewswire-FirstCall/ --
Daugherty Resources (Nasdaq: NGAS) has acquired the oil and gas drilling
rights to an area containing approximately 100,000 acres in eastern Kentucky.
These rights were acquired pursuant to an agreement with Equitable Production
Company, Charleston, WV, and KRCC Oil & Gas, LLC, Lexington, KY. The acreage
is located in the Appalachian Basin in Leslie, Letcher, Harlan and Perry
Counties, Kentucky.
Daugherty expects to commence development of the acreage in the summer of
2003 with plans to drill 25 wells by December 31, 2003. The properties are
located on the southeastern edge of the Big Sandy Consolidated Field that was
discovered in 1921. The Field covers 250,000 acres and has produced over 2.5
Trillion Cubic Feet (TCF) of natural gas from approximately 10,000 wells.
Wells to be drilled on the acreage is expected to be 3,500 to 4,500 feet deep
and test three primary natural gas pay-zones. Gas reserves are expected to
range from 250 to 450 Million Cubic Feet (MMCF) per well.
The acreage extends 41 miles along the Pine Mountain Fault system and
increases Daugherty's acreage position to approximately 160,000 acres in the
Appalachian Basin. "This farm-out represents a significant portion of
undrilled properties in this part of the Big Sandy Field," stated William S.
Daugherty, President & CEO. "We look forward to the development of this
resource and expect that our long-term drilling plans will be geared toward
developing this property."
Based in Lexington, Kentucky, Daugherty Resources is a natural resources
development company with interests in oil and gas development and gold and
silver properties. Additional information can be accessed on the Company's
website at http://www.ngas.com.
The information in this release includes certain forward-looking
statements that are based on assumptions that in the future may prove not to
have been accurate. Those statements, and Daugherty Resources and its
subsidiaries are subject to a number of risks, including production variances
from expectations, volatility of product prices, the capital expenditures
required to fund its operations, environmental risks, competition, government
regulation, and the ability of the company to implement its business strategy.
These and other risks are described in the company's documents and reports
that are available from the company and the United States Securities and
Exchange Commission.
SOURCE Daugherty Resources, Inc.
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Related links:
http://www.ngas.com
CONTACT:
William S. Daugherty, President of Daugherty
Resources, Inc., +1-859-263-3948, or fax, +1-859-263-4228, or
e-mail, ngas@ngas.com
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