LEXINGTON, Ky., May 1 /PRNewswire-FirstCall/ --
Daugherty Resources (Nasdaq: NGAS) announced today the completion of five
high volume gas wells, which resulted in the extension of both the Kay Jay and
Fonde Gas Fields. Daugherty owns 26% working interest in these five wells and
an additional 12 other gas wells drilled in the first quarter 2002.
Kay Jay Field, Knox County, Kentucky
Four of the high volume completions were in the Kay Jay Field in the Maxon
Sand. The EREC-Huber #113 openflowed 3,700 Mcf/d (thousand cubic feet per
day) of gas, the EREC-Huber #114 openflowed 1,400 Mcf/d, the EREC-Huber #88
openflowed 950 Mcf/d and the Huber-EREC #36 openflowed 500 Mcf/d. These wells
extend the Maxon field one mile from the EREC-Huber #65, a Maxon well that was
drilled in March 2001. The #65 openflowed 1,550 Mcf/d and has produced more
than 45,000 Mcf since it went into production on April 10, 2001. The Company
has drilled a total of 66 wells in the Kay Jay Field in which it controls
20,000 acres.
Fonde Field, Bell County, Kentucky
The CNR-Thacker #1 openflowed 2,800 Mcf from the Big Lime Formation and is
a field extension to the Fonde Gas Field. Daugherty Resources has drilled a
total of 20 wells in the Fonde Field and the average openflow of completed
wells has been 820 Mcf/d per well. The Company controls 17,000 contiguous
acres in the immediate vicinity of the Fonde Field.
"Our first quarter drilling was the most successful in the Company's
history," stated President and CEO William S. Daugherty. "We extended both
our Kay Jay and Fonde Gas Fields and have successfully acquired strategic
lease additions in both fields. We expect these wells to be typical
Appalachian producers -- high BTU, 20 year well life and no water associated
with the gas production, making them low cost producers." The 17 new wells
drilled in the first quarter 2002 began going on line this week and will
increase Daugherty's net gas production approximately 25%. Daugherty has
commenced staking well locations for its summer drilling program that should
further delineate the extension of the Kay Jay and Fonde Gas Fields.
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
e-mail, ngas@ngas.com
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