LEXINGTON, Ky., May 13 /PRNewswire-FirstCall/ --
Daugherty Resources (Nasdaq: NGAS) today reported earnings of $2,082,812,
or $0.36 per share, for the three-month period ending March 31, 2003. This
compares to net income of $963,192, or $0.19 per share, for the first quarter
of 2002.
Gross revenues increased 121% to $8,830,854, compared with first quarter
2002 revenues of $4,003,928. This increase was primarily attributable to a
$4,549,000 increase in contract drilling revenue during the quarter, when the
Company drilled 29 successful natural gas wells (7.3747 net wells) versus
17 wells (4.9874 net wells) during the first quarter of 2002. During the
quarter, Daugherty Resources' gross revenues were derived from contract
drilling revenues of $8,033,000 (91%), oil and gas production revenues of
$529,004 (6%) and gas transmission and compression revenues of $268,850 (3%).
"Our drilling activity in the first quarter was directly related to the
success of our year-end drilling, which included $8.775 million in investor
capital," said William S. Daugherty, President and CEO. "Coupled with
continued strong gas prices, we should realize a substantial increase in oil
and gas production when the new program wells are put on line by the third
quarter of this year. Based on our recent success and acreage acquisitions, I
expect our drilling activity will continue to increase throughout 2003."
Daugherty Resources' complete quarterly report, Form 10-QSB, can be
accessed on the web at http://www.sec.gov or by visiting the Company's website at
http://www.ngas.com.
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.
DAUGHERTY RESOURCES, INC.
(Incorporated under the Company Act of British Columbia)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
(U.S. Funds)
(Unaudited)
Three Months Ended March 31
2003 2002
REVENUE
Contract drilling (Not less
than 95% attributable
to related party transactions) $ 8,033,000 $ 3,484,000
Oil and gas production 529,004 235,551
Gas transmission and compression 268,850 284,377
8,830,854 4,003,928
DIRECT EXPENSES
Contract drilling 3,395,165 1,776,634
Oil and gas production 316,014 194,147
Gas transmission and compression 108,189 232,375
3,819,368 2,203,156
GROSS PROFIT 5,011,486 1,800,772
OTHER INCOME (EXPENSE)
Selling, general and administrative (2,692,215) (639,661)
Depreciation, depletion and amortization (179,080) (139,380)
Interest expense (82,453) (72,526)
Interest income 28,828 13,987
Other, net (3,754) --
(2,928,674) (837,580)
INCOME BEFORE INCOME TAXES 2,082,812 963,192
INCOME TAX EXPENSE
Current 791,469 366,013
Deferred (791,469) (366,013)
-- --
NET INCOME FOR THE PERIOD 2,082,812 963,192
DEFICIT, beginning of period (20,119,789) (20,754,739)
DEFICIT, end of period $ (18,036,977) $ (19,791,547)
NET INCOME PER SHARE
Basic $0.36 $0.19
Fully diluted $0.25 $0.16
DAUGHERTY RESOURCES, INC.
(Incorporated under the Company Act of British Columbia)
CONDENSED CONSOLIDATED BALANCE SHEET
(U.S. Funds)
(Unaudited)
MARCH 31, 2003
ASSETS
March 31, 2003 December 31, 2002
CURRENT
Cash and cash equivalents $ 4,615,425 $ 7,031,307
Accounts receivable 309,087 328,035
Prepaid expense and other asset 223,537 460,663
Loans to related parties 87,416 64,162
5,235,465 7,884,167
BONDS AND DEPOSITS 41,000 41,000
OIL AND GAS PROPERTIES 11,096,483 9,679,549
PROPERTY AND EQUIPMENT 1,255,421 918,855
LOANS TO RELATED PARTIES 666,539 711,658
INVESTMENT 119,081 119,081
DEFERRED FINANCING COSTS 36,666 43,546
GOODWILL 313,177 313,177
$ 18,763,832 $ 19,711,033
LIABILITIES
CURRENT
Bank loans $ 134,162 $ 134,162
Accounts payable 1,268,312 1,094,941
Accrued liabilities 2,402,113 1,212,094
Customers' drilling deposits 859,200 6,764,200
Long-term debt 170,891 192,341
4,834,678 9,397,738
LONG-TERM DEBT 5,060,801 4,027,198
9,895,479 13,424,936
SHAREHOLDERS' EQUITY
CAPITAL STOCK
AUTHORIZED
5,000,000 Preferred shares, non-cumulative, convertible
100,000,000 Common shares
ISSUED
226,354 Preferred shares (2002 -
558,476) 417,489 1,784,493
6,345,207 Common shares (2002 -
5,505,670) 26,456,245 24,589,797
21,100 Common shares held in treasury,
at cost (23,630) (23,630)
TO BE ISSUED
24,887 Common shares to be issued 55,226 55,226
26,905,330 26,405,886
DEFICIT (18,036,977) (20,119,789)
8,868,353 6,286,097
$ 18,763,832 $ 19,711,033
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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