LEXINGTON, Ky., April 29 /PRNewswire-FirstCall/ -- Daugherty Resources,
Inc. (Nasdaq: NGAS) today announced a $5,832,450 equity infusion by
institutional investors. The Company issued a total of 975,000 shares of its
common stock to the investors at $5.982 per share, reflecting the stock's
average closing bid price for the five trading days preceding the date of the
purchase agreement for the private placement. The newly issued equity
increased the Company's total common stock currently outstanding to
14,117,594 shares.
"The success of our ongoing drilling, plus continuing strength in natural
gas prices, has contributed to our record performance and generated
opportunities for attracting investment capital to sustain our growth," said
William S. Daugherty, President and CEO of Daugherty Resources. "We plan to
use the proceeds from this private placement to fund part of our 2004 drilling
and pipeline construction initiatives in our core Appalachian Basin operating
areas."
Investors in the private placement also received three-year warrants to
purchase up to 292,500 additional common shares at an exercise price of
$6.25 per share. The purchase agreement for the private placement provides
for the Company to register the newly issued shares and any shares purchased
under the warrants for resale on behalf the investors.
Investment banking services for the transaction were provided to the
Company by The Shemano Group, Inc., headquartered in San Francisco,
California. The Shemano Group received a 7% fee and a five-year warrant to
purchase up to 38,025 shares of the Company's common stock at $6.25 per share.
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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Related links:
http://www.ngas.com
CONTACT:
Investor Relations, Michael P. Windisch, CFO
of Daugherty Resources, Inc., +1-859-263-3948, or ngas@ngas.com
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