LEXINGTON, Ky., Sept. 1 /PRNewswire/ -- Daugherty Resources, Inc.
(Nasdaq: NGAS) said today that its subsidiary, Daugherty Petroleum, Inc. had
completed a high volume well on its 14,000 acre farmout acquired from
Equitable Resources Energy Company.
The Huber-EREC #14, drilled to a total depth of 3,219 feet, was dual
completed in the Clinton and Big Lime Formations. The well openflowed 1.1
million cubic feet per day (MMCFD) and was treated with a two stage foam frac.
"This well is significant because the Clinton Formation's lithology
changed from shale to sand and the Big Lime Formation displayed the best
potential of the 22 wells drilled on the farmout," said D. Michael Wallen,
Vice President of Engineering. "We estimate that this well contains 425
million cubic feet (MMCF) of gas reserves which equates to a finding cost of
$0.38/MCF." Current production from the well is 200 MCFD.
Three offset drilling locations have been staked and drilling will
commence by October 1, reported Daugherty Resources President William S.
Daugherty. "Our goal is to expand Daugherty Petroleum's reserve base by
aggressively developing our existing properties." The Company holds 30,000
acres for development drilling.
Daugherty Resources is a natural resources development company with
interests in oil and gas development, wood products manufacturing 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.
SOURCE Daugherty Resources, Inc.
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CONTACT:
William S. Daugherty, President of Daugherty
Resources, Inc., 606-263-3948, or fax, 606-263-4228
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