LEXINGTON, Ky., Aug. 16 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
reported net income of $528,491, or $0.21 per share, on revenues of $3,937,255
for the six months ending June 30, 2000, compared to a net income of $177,509,
or $0.08 per share on revenues of $539,611 for the six months ended June 30,
1999.  For the quarter ended June 30, 2000, Daugherty Resources posted a net
loss of $191,951, or $0.0763 per share on revenues of $957,660.
    For the three month period ending June 30, 2000, the Company sold 78.1
million cubic feet equivalent (mmcfe) of natural gas as compared to 72.3 mmcfe
sold in the first quarter 2000.  Revenues from gas and oil sales are expected
to climb sharply with the anticipated October 1, 2000 completion of a 40,000-
foot expansion of the Company's gas gathering system.
    In the second quarter, the Company drilled three successful development
wells.  The three wells were part of a six-well program that was completed in
the third quarter.  On August 3, 2000, the Company signed partnership and
turnkey drilling agreements to drill up to 11 wells by March 31, 2001.  The
Company has successfully drilled the first well in that partnership bringing
its yearly total to 21 successful wells.  Since its January 2000 discovery of
the Fonde Oil and Gas Field, the Company has drilled 13 successful wells in
the field located in Bell County, Kentucky.
    "Increased natural gas prices have put our industry in the spotlight,"
stated Daugherty Resources President William S. Daugherty.  "It has allowed
our Company to finance additional wells that enable us to continue to focus on
increasing our revenue base.  We have been extremely successful in drilling
new wells this year."
    The Company expects to drill nine additional wells this year for a total
of 30 wells.
    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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