LEXINGTON, Ky., May 19 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
today announced that it has reported a net income from operations of $720,442,
or $0.29 per share for the first quarter ended March 31, 2000. Revenues were
$2.98 million for the quarter as compared to first quarter 1999 revenues of
$1.36 million, up 119%.
The increase in revenues and net income over first quarter 1999 was due to
increased drilling operations ($2.8 million versus $326,000) and oil and gas
production and operation revenues ($142,631 versus $112,604). A total of
14 successful wells (3.3 net) were drilled in the first quarter 2000. Most of
the 14 wells were not in production during the first quarter. The Company
expects production volumes to increase as the year continues as a result of
the new wells coming into production and as its gathering system is extended
to increase the flow of gas.
"The Company expects to drill an additional 16 wells this year for a total
of 30, a dramatic increase over the five wells drilled in 1999," stated
President William S. Daugherty. "Stronger oil and gas prices and increased
production rates will make 2000 a record year for the company."
The Company's internal estimate of its interest in the proven reserves
from the 14 wells ranges from .825 to one billion cubic feet equivalent
(Bcfe). Energy equivalents sold during the first quarter totaled
approximately 60 million cubic feet equivalent (Mmcfe).
Daugherty Resources is a natural resources development company with
interests in oil and gas development and gold mining prospects.
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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CONTACT:
William S. Daugherty, President of Daugherty
Resources, Inc., 859-263-3948, or fax, 859-263-4228, or e-mail,
ngas@daughertyresources.com
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