Daugherty Resources Agrees to Acquire Petroleum Exploration and Technology, Inc.

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Daugherty Resources Agrees to Acquire Petroleum Exploration and Technology, Inc.
    LEXINGTON, Ky., June 25 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that it has signed an agreement to acquire Petroleum
Exploration and Technology, Inc. of Los Angeles, California.
    Petroleum Exploration and Technology (PET) is an energy development firm
allied with Ingenieros Petroleros y Geologos Asociados, S.A. de C.V., a
Mexican corporation which is in the process of submitting bids to drill oil
and gas wells in Mexico.
    Daugherty Resources will acquire 100% of PET on a performance basis
calculated on a formula of PET's earnings before interest, taxes, depreciation
and amortization.  In the first phase, Daugherty Resources will acquire PET
for 694,000 restricted common shares when PET's accrued earnings total a
minimum of $1.8 Million.
    Additional stock will then be disbursed by Daugherty Resources over a
three-year extended period based upon a formula relating to PET's future
profits of up to $30 Million.  The Company will seek approval by the
shareholders.
    Daugherty Resources' Chief Executive Officer, William S. Daugherty, said,
"We are really excited about this acquisition.  This acquisition has the
potential to significantly enhance our revenue base, allowing the Company to
capitalize on skills developed by years of experience in the oil and gas
business.  It will improve our prospects of doing additional acquisitions on
an equally attractive basis, which will take the Company to a higher level of
activity."
    Daugherty Resources, Inc. is a natural resources development company with
interests in oil and gas development, wood products manufacturing 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.