LEXINGTON, Ky., Aug. 17 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today the financial results of its second quarter ended
June 30, 2001. Second quarter gross revenues, down due to a delay in the
commencement of drilling operations related to Company sponsored partnerships
that commenced during the third quarter, were $577,687 compared to $957,660
for the comparable 2000 quarter. Net loss was $801,279, or $0.23 per share
compared to a loss of $191,951 or $0.07 per share for the comparable 2000
quarter. Since December 31, 2000, debt decreased $507,523 from $6.1 million
to $5.6 million at June 30, 2001. EBITDA for the six-month period ending
June 30, 2001 was $1,011,833.
Oil and gas production revenues increased $314,550 for the second quarter.
For the six months ending June 30, 2001, oil and gas production revenues
increased $580,981 to $906,130 compared to $325,149 for the same period in
2000. The increase in revenue is attributable to an increase in the price for
natural gas and crude oil that the Company received during the period and an
increase in production resulting from new wells being placed on line.
Gross revenue for the second period was down because the Company did not
drill any new wells. However, since June 30, 2001, the Company has drilled
5 (1.5 net) successful gas wells, four of those on behalf of partnerships
sponsored by Daugherty Petroleum. The Company expects to drill up to
23 additional wells before year-end. Year to date, 16 successful natural gas
wells have been drilled.
On July 19, 2001 a new $10 million credit facility was executed with
KeyBank National Association, with $2.25 million immediately available.
Increases in the credit facility are based upon periodic reviews of the value
of the Company's reserves and its financial position. The loan has a 36-month
term and allowed the Company to pay off its short-term reserve based loan, and
will provide capital for drilling new wells and extending its natural gas
gathering system.
Daugherty Resources' complete second quarter report for 2001 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
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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