LEXINGTON, Ky., May 3 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today its financial results for the year ended 2000. Net income was
$48,639, compared to a loss of $7,892,135 for 1999. (The 1999 loss included a
$6,782,229 one-time write-down of the gold mineral properties.).
Earnings before interest expense, income taxes, depreciation, depletion
and amortization (EBITDA) in 2000 was $955,800 verses a negative $372,157 for
1999. Revenues increased by 364% to $6.5 million in 2000 compared to $1.4
million in 1999. Total debt decreased from $7,018,043 in 1999 to $6,118,669
in 2000.
Oil and gas production increased 58% in 2000 over 1999 levels. Net
production in 2000 was 286.229 MMCFE (million cubic feet gas equivalents)
compared to 180.640 MMCFE in 1999. Total net reserves increased by 2.5 BCFE
(billion cubic feet gas equivalent) in 2000 to 14.5 BCFE. The total value of
the Company's proven reserves for 2000 increased to $20 million compared to
$5.5 million in 1999.
In 2000, Daugherty Resources drilled a total of 24 wells (7.93 net wells)
verses 5 wells (1.95 net wells) in 1999. In the first quarter 2001, Daugherty
drilled 11 wells (2.76 net wells). Higher oil and gas prices and production
rates will significantly increase working capital in 2001. In November 2000,
Daugherty's fixed price natural gas contracts increased from $2.47 per MCF
(thousand cubic feet) to an average of $5.03 per MCF. The company currently
has gas sales contracts for 1,500 MCF per day that expire October 30, 2001.
President & CEO, William S. Daugherty said, "We plan to further improve
operating results in 2001 by drilling 40 wells in the Appalachian Basin and
securing additional acreage for our future drilling plans."
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.daughertyresources.com or by reviewing its December 31, 2000 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.daughertyresources.com
CONTACT:
Investor Relations Department of Daugherty
Resources, Inc., 859-263-3948, or fax, 859-263-4228, or e-mail,
ngas@daughertyresources.com
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