LEXINGTON, Ky., Feb. 7 /PRNewswire-FirstCall/ -- NGAS Resources, Inc.
(Nasdaq: NGAS) today announced its estimated proved oil and gas reserves at
December 31, 2004 were 66,074 Mmcfe, up 34,703 Mmcfe or 111% from December 31,
2003. The Company's proved developed reserves increased to 52.7% of total
proved reserves, compared to 41.0% at December 31, 2003. NGAS' standardized
measure of discounted future net cash flows (discounted at 10%) increased 175%
to $92.4 million as of December 31, 2004, compared to $33.6 million as of
December 31, 2003. For the year ended December 31, 2004, the Company
increased its net oil and gas production to 860.7 Mmcfe, up 77% from
485.9 Mmcfe in the prior year.
"Our production performance and year-end reserves reflect our continued
growth during 2004," commented William S. Daugherty, President and CEO. "We
drilled 155 gross wells and acquired strategic oil and gas producing
properties that have significant potential for future drilling. We remain
focused on increasing shareholder value on a long-term basis and will continue
to aggressively develop our properties and evaluate acquisition targets that
meet our expansion criteria."
Wright and Company, an independent petroleum engineering firm located in
Houston and Nashville, has compiled the Company's reserves for the past seven
years. A summary of the Company's estimated reserve volumes at the end of the
last three years is presented below.
As of December 31,
Estimated Proved Reserves: 2004 2003 2002
Natural gas (Mcf)
Proved developed 33,104,534 12,345,355 7,151,933
Proved undeveloped 31,192,985 18,454,309 13,668,366
Total 64,297,519 30,799,664 20,820,299
Crude oil (Bbl)
Proved developed 286,136 85,253 106,106
Proved undeveloped 9,992 9,992 9,992
Total 296,128 95,245 116,098
Natural gas equivalents
(Mcfe) 66,074,287 31,371,134 21,516,887
NGAS Resources is a natural resources company focused on natural gas
development drilling and reserve growth. Based in Lexington, Kentucky, the
Company specializes in developing its own geological prospects concentrated in
the Appalachian Basin. Additional information about the Company can be
accessed on its website at: 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 and prospects. Actual
performance and prospects 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 ongoing drilling initiatives 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 NGAS Resources, Inc.
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Related links:
http://www.ngas.com
CONTACT:
Media, Teresa Barnes, Cell, +1-303-521-4080,
or Investor Relations, Michael P. Windisch, CFO, Fax,
+1-859-263-4228, both of NGAS Resources, Inc., +1-859-263-3948,
or ngas@ngas.com
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