LEXINGTON, Ky., Aug. 15 /PRNewswire-FirstCall/ --
    Daugherty Resources (Nasdaq: NGAS) reported that its second quarter oil
and gas production increased 19.6% over the first quarter 2002.  Oil and gas
production in the second quarter was 96,631 Mcfe (thousand cubic feet
equivalents) compared to 80,759 Mcfe in the first quarter 2002.  When compared
to the second quarter 2001, production was up 31.5% from 73,481 Mcfe.  Gas
prices in the second quarter were up 47.6% to $3.72 per Mcf from the first
quarter gas prices of $2.52 per Mcf.
    Second quarter revenues were down $114,357 to $403,800, when compared to
second quarter revenues for the same period last year of $518,157.  The
revenues were down due to lower gas prices during this period compared to last
year and no turnkey drilling projects were being funded in the second quarter
of 2002.  The net loss for the second quarter was $378,003, or $0.07 per
share, compared to a net loss of $801,279, or $0.23 per share for the same
quarter last year.
    For the six-month period ended June 30, gross revenues increased 16.9% to
$4.366 million from $3.736 million for the six months ended June 30, 2001.
Net income is up 216.9% to $585,189, compared to $184,637 for the six months
ended June 30, 2001.
    "To date, we have drilled 19 successful natural gas wells this year that
have increased our net production", said William S. Daugherty, President &
CEO.  "We intend to drill another 30 wells between now and March 31, 2003 in
our core areas in the Appalachian Basin."  Daugherty plans to market drilling
programs to provide the majority of the capital required to fund the wells to
be drilled.  The Company will retain approximately 25% interest in each well.
    Daugherty Resources' complete second quarter report for 2002, 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
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.

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