LEXINGTON, Ky., Oct. 4 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that during the third quarter of 2000 that it drilled six
successful development wells in its Fonde Oil and Gas Field in Bell County,
Kentucky.  The six wells bring the total number of successful wells drilled
during 2000 in the Fonde Field to 17.  The Company owns 33% working interest
in each of the wells.
    "Natural gas prices have increased almost 100% between January and
October," said Daugherty Resources President William S. Daugherty.  "The vast
majority of our gas is currently being marketed at $2.50 per MCF on a one-year
contract that expires October 31.  The Company expects that its new one year
contract price starting November 1 should be approximately $5.00 per MCF.
Higher gas prices, coupled with increased production from our wells will
greatly benefit the company."
    In order to flow more gas to market, 40,000 feet of new four inch gas
gathering pipeline will be in service well in November.  Gas revenues are
expected to climb sharply in the last two months of the year, due to the
additional volume and the significant increase in the price of natural gas.
    The Company has drilled a total of 23 successful wells this year.  In
addition to the 17 wells drilled in Fonde, six were drilled in its Kay Jay
Field in Knox County, Kentucky.  The Company currently has partnership and
turnkey drilling agreements to drill eleven additional wells and expects to
enter into additional agreements increasing the number of wells the Company
will drill by March 31, 2001 to at least 34.
    Daugherty Resources is a natural resources development company with
interests in oil and gas development.  The Company has a gold mining property
on the market for sale.

    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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