LEXINGTON, Ky., March 18 /PRNewswire-FirstCall/ -- DAUGHERTY RESOURCES,
INC. (Nasdaq: NGAS) today announced the Company's total proved reserves at
December 31, 2003, were 31,371 Mmcfe, up 9,854 Mmcfe, or 46%, from
December 31, 2002. For the year ended December 31, 2003, the Company
increased its net oil and gas production to 485.9 Mmcfe, up 51% from
321.6 Mmcfe in the prior year. Daugherty's standardized measure of discounted
future net cash flows (discounted at 10%) increased 60.35% to $33.597 million
as of December 31, 2003, compared to $20.952 million as of December 31, 2002.
Although natural gas and oil prices increased 9.6% and 10.9% respectively, the
increase in reserves is primarily the result of the Company's drilling
activities.
"The past year has been a substantial growth period for our company,"
commented William S. Daugherty, President and CEO. "We were able to drill 89
gas wells during the 2003 year with a 100% success rate. We expect 2004
reserves to rise dramatically because of programs and the number of wells we
plan to drill in 2004."
Wright and Company, a petroleum engineering firm located in Houston and
Nashville, has compiled the Company's reserves for the past six years. Listed
below is a summary of the Company's reserves for the years ending December 31,
2003, 2002 and 2001.
As of December 31,
Estimated Proved Reserves: 2003 2002 2001
Natural gas (Mcf)
Proved developed 12,345,355 7,151,933 5,881,153
Proved undeveloped 18,454,309 13,668,366 4,205,260
Total 30,799,664 20,820,299 10,086,413
Crude oil (Bbl)
Proved developed 85,253 106,106 123,196
Proved undeveloped 9,992 9,992 9,572
Total 95,245 116,098 132,768
Natural gas
equivalents (Mcfe) 31,371,134 21,516,887 10,883,021
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.
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CONTACT:
William S. Daugherty, President and CEO of
Daugherty Resources, Inc., +1-859-263-3948, or fax,
+1-859-263-4228, or e-mail, ngas@ngas.com
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