LEXINGTON, Ky., July 1 /PRNewswire-FirstCall/ --
Daugherty Resources (Nasdaq: NGAS) announced today that it has acquired a
9,400 acre oil and gas lease in the Big Sandy Field in eastern Kentucky.
Located in Knox County, it is on the North side of the Pine Mountain Fault
System, and lies between Daugherty's Kay Jay and Leatherwood Prospects.
"This acreage fits our long-term strategy, both in location and prospect
potential," said William S. Daugherty, President and CEO. "We are continuing
our focus on the Appalachian Basin where the gas reserves are predictable and
long-lived. This Prospect has the potential for 80 drilling locations.
Pipelines, nearby gas production, and the Pine Mountain Fault System are all
present making this a very viable prospect."
Daugherty plans to start development on the Prospect later this summer.
The wells will be drilled at approximately 4,200 feet deep and will test as
many as five pay zones. Gas reserves are expected to be up to 450,000 Mcf per
well.
During the first two quarters of 2003, Daugherty drilled 41 natural
gas wells. The Company plans to drill as a total of approximately
85 gas wells in 2003.
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.
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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