LEXINGTON, Ky., April 4 /PRNewswire-FirstCall/ --
Daugherty Resources (Nasdaq: NGAS) announced today its financial results
for the year ended 2001. A net loss of $327,258 is being reported for 2001
compared to a net loss of $251,572 for 2000. Earnings before interest, income
taxes, depreciation and amortization (EBITDA) in 2001 was $445,970.
Revenues increased 16.4% to $7,157,494 over 2000 revenues of $6,149,307.
Oil and gas production increased 10% in 2001 over 2000 levels. Net production
in 2001 to the Company was 314.703 MMCFE (million cubic feet of gas
equivalents) compared to 286.229 MMCFE in 2000. Daugherty Resources drilled
22 wells (5.7 net wells) in 2001 verses 24 wells (7.93 net wells) in 2000. In
the first quarter of 2002, Daugherty drilled a total 17 wells (4.45 net wells)
for a company quarterly record.
Daugherty Resources adopted the provisions of Accounting Guideline AcG-11
that allowed the Company to write-off the remaining cost of its gold mining
property. This write-off has been accounted for as a change in accounting
policy and applied retroactively. As a result, the 2001 financial statement
does not reflect the Company's investment in its gold mining property. Also,
a change was made in the accounting for the Company's oil and gas partnerships
and turnkey drilling revenues to eliminate any turnkey profit applicable to
its proportionate partnership interest.
"2001 was actually good for Daugherty Resources," said William S.
Daugherty, President and CEO. "We increased total revenue and joint venture
partnership activity, which is reflected by the 17 wells we were able to drill
in the first quarter of 2002 from funds raised at the end of 2001. Our oil
and gas production and revenues were up even as commodity prices slid.
Recently oil and gas prices have started moving back up and higher prices will
certainly help our bottom line. Natural gas prices were in the $2.40/MMbtu
range at year-end and today's Henry Hub spot price is $3.67/MMbtu."
"Last quarter we were able to increase our drilling efforts to take
advantage of the development opportunities associated with lower gas prices.
We will continue to concentrate on adding to gas reserves and increasing our
inventory of drilling prospects."
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 or by reviewing the December 31, 2001 Form 10-KSB.
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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