LEXINGTON, Ky., Jan. 8 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that it closed its year-end 2001 drilling programs with
$5.5 million in investor subscriptions, up 175% from the $2 million raised in
its year-end 2000 drilling programs. This brings the number of wells funded
in the 2001 drilling programs to 26 wells. Daugherty Resources will
participate in 25% working interest in each of the wells.
William S. Daugherty, CEO of Daugherty Resources, said, "Even with the
uncertainty of the events of September 11, our investors understand the long-
term energy needs of this nation. Our typical well is expected to produce
natural gas for more than 20 years, so market spikes and lows do not affect
the economics as much when compared to shorter lived gas reserves. Another
favorable comparison is our high success rate. These factors -- long reserve
life, high success rate, low operating costs, excellent markets and tax
advantages for drilling all combine to give our investors incentives to invest
year after year." Sixty percent (60%) of the year-end 2000 investors invested
in the 2001 drilling programs.
Of the 26 wells funded, 15 wells will be drilled in the first quarter
2002. Eleven had been drilled by December 31, 2001, bringing a total number
drilled by the Company in 2001 to 22. All 22 were successful gas wells.
Based in Lexington, Kentucky, Daugherty Resources is a natural resources
development company with interests in oil and gas development and gold mining
prospects. 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
ngas@ngas.com
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