LEXINGTON, Ky., Aug. 14 /PRNewswire-FirstCall/ -- Daugherty Resources
(Nasdaq: NGAS) today reported that its second quarter gross revenue increased
790% to $3,851,469, compared with second quarter 2002 revenue of $432,781.
The improvement was primarily from growth in contract drilling revenue to
$3,025,000 during the quarter, when the Company drilled 12 successful natural
gas wells (2.8325 net wells). The Company also expanded its oil and gas
production revenue 142% to $537,286, the result of increased production
volumes and substantially higher prices for natural gas.
For the three months ended June 30, 2003, Daugherty Resources reported a
net loss of $69,882, or $0.01 per share, compared to a net loss of $378,003,
or $0.07 per share, for the second quarter of 2002. Results for the current
quarter included a non-cash compensation charge of $558,000 from the exercise
of certain employee stock options with a cashless exercise feature. The
charge reflected the difference between the cashless exercise price of options
granted in 2000 and the market price of the underlying shares on the exercise
date.
For the six months ended June 30, 2003, net income was $2,012,930, or
$0.32 per basic share, compared to $585,189 or $0.11 per share in the first
half of 2002. Gross revenues for the current six-month period were $12.682
million, an increase of 186% from $4.437 million in the same period last year.
"Our significant drilling activity during the second quarter was conducted
for our newest initiative, a 30-well drilling program we recently closed,"
said William S. Daugherty, President and CEO. "This contributed to a
profitable quarter before the non-recurring compensation charge, with
operating cash flows of nearly $900,000. Our ability to raise capital and
maintain the substantial pace of drilling throughout the year reflects both
the success of our recent drilling programs and the continued strong outlook
on natural gas prices. With our significant acreage position in the
Appalachian Basin, I expect continued strength in our drilling activity,
related production revenue and overall performance."
Daugherty Resources' complete quarterly report on 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
company focused on natural gas development drilling and reserve growth.
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(U.S. funds)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
REVENUE
Contract drilling
(Note 12) $ 3,025,000 $ -- $ 11,058,000 $ 3,484,000
Oil and gas
production 537,286 221,895 1,066,290 457,446
Gas transmission
and compression 289,183 210,886 558,034 495,263
Total revenue 3,851,469 432,781 12,682,324 4,436,709
DIRECT EXPENSES
Contract drilling 1,283,184 -- 4,678,349 1,776,634
Oil and gas
production 104,930 152,502 420,944 346,649
Gas transmission and
compression 146,573 112,518 254,762 344,893
Total direct
expenses 1,534,687 265,020 5,354,055 2,468,176
GROSS PROFIT 2,316,782 167,761 7,328,269 1,968,533
OTHER INCOME (EXPENSES)
Selling, general and
administrative (1,505,514) (367,454) (4,197,729) (1,007,115)
Compensation from
options and
warrants (589,200) -- (589,200) --
Depreciation, depletion
and amortization (194,080) (139,380) (373,160) (278,760)
Interest expense (122,180) (49,241) (204,633) (121,767)
Interest income 28,707 10,311 57,535 24,298
Other, net (4,397) -- (8,152) --
Total other
income
(expenses) (2,386,664) (545,764) (5,315,339) (1,383,344)
INCOME (LOSS) BEFORE
INCOME TAXES (69,882) (378,003) 2,012,930 585,189
INCOME TAX EXPENSE
Current (26,555) (143,641) 764,914 222,372
Benefit realized
on loss carried
forward 26,555 143,641 (764,914) (222,372)
NET INCOME (LOSS) $ (69,882) $ (378,003) $ 2,012,930 $ 585,189
DEFICIT, beginning
of period $(18,036,977) $(19,791,547) $(20,119,789) $(20,754,739)
DEFICIT, end of
period $(18,106,859) $(20,169,550) $(18,106,859) $(20,169,550)
NET INCOME (LOSS)
PER SHARE
Basic $ (0.01) $ (0.07) $ 0.32 $ 0.11
Diluted $ (0.01) $ (0.07) $ 0.22 $ 0.10
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 6,632,620 5,346,689 6,249,688 5,209,765
Diluted 6,632,620 5,346,689 9,523,329 6,154,095
DAUGHERTY RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. funds)
(Unaudited)
June 30, December 31,
ASSETS 2003 2002
Current assets:
Cash and cash equivalents $ 7,450,076 $ 7,031,307
Accounts receivable 406,935 328,035
Prepaid expenses and other
current assets 370,428 460,663
Loans to related parties (Note 4) 122,855 64,162
Total current assets 8,350,294 7,884,167
Bonds and deposits 41,000 41,000
Oil and gas properties (Note 2) 12,002,970 9,679,549
Property and equipment (Note 3) 1,317,843 918,855
Loans to related parties (Note 4) 600,386 711,658
Investment (Note 5) 119,081 119,081
Deferred financing costs (Note 6) 29,786 43,546
Goodwill (Note 7) 313,177 313,177
Total assets $ 22,774,537 $ 19,711,033
LIABILITIES
Current liabilities:
Bank loans (Note 8) $ 134,162 $ 134,162
Accounts payable 1,167,828 1,094,941
Accrued liabilities 1,839,130 1,212,094
Customers' drilling deposits 1,812,700 6,764,200
Long term debt, current
portion (Note 9) 165,546 192,341
Total current liabilities 5,119,366 9,397,738
Long term debt (Note 9) 3,946,714 4,027,198
Total liabilities 9,066,080 13,424,936
SHAREHOLDERS' EQUITY
Capital Stock (Note 10)
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
8,798,737 Common shares
(2002 - 5,505,670) 31,366,231 24,589,797
21,100 Common shares
held in treasury, at cost (23,630) (23,630)
To be issued:
24,887 Common shares 55,226 55,226
31,815,316 26,405,886
Accumulated deficit (18,106,859) (20,119,789)
Total shareholders' equity 13,708,457 6,286,097
Total liabilities and
shareholders' equity $ 22,774,537 $ 19,711,033
SOURCE Daugherty Resources, Inc.
 back to top
CONTACT:
William S. Daugherty, President of Daugherty
Resources, Inc., +1-859-263-3948, or fax, +1-859-263-4228, or
ngas@ngas.com
|
