LEXINGTON, Ky., June 22 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today the discovery of a significant new oil and gas field in the
Appalachian Basin.  The Company has drilled 6 successful wells on its 5,000
acre lease block.
    The Fonde Oil and Gas Field is located in Bell County, Kentucky.  Wright &
Company, an independent engineering firm with offices in Houston, Texas and
Nashville, Tennessee, has estimated that the six wells and eleven proven
undeveloped locations have reserves of 4.9 BCFE.  Daugherty owns one third of
the drilled wells and expects to maintain similar interests in subsequent
wells.
    Daugherty Resources also announced that it has completed the acquisition
of a 12,300 acre oil and gas lease adjacent to the Company's new discovery.
The lease was acquired from the J. M. Huber Corporation.  "The acquisition of
this lease is a strategic element in the control and development of our new
Fonde Oil and Gas Field," said William S. Daugherty, President.  "This allows
us control of 17,000 contiguous acres.  We plan to drill a minimum of ten
additional wells in this field by year end to further delineate the
discovery."
    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.

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