LEXINGTON, Ky., Oct. 7 /PRNewswire-FirstCall/ -- Daugherty Resources
(Nasdaq: NGAS) announced today the completion of a 10 mile extension of its
gas gathering system and the installation of 1,200 horse power of new
compression. This new system serves the eastern section of its Kay Jay Field
in Knox and Bell Counties, Kentucky.
This system connects to a Delta Natural Gas Company 12 inch pipeline and
increases Daugherty's daily transportation capacity by 5,000 Mcf. Currently
the Company is flowing 3,500 Mcf per day through the new system and plans to
increase the flow to 5,000 Mcf per day during the month of October.
The increased gas flow is a result of wells drilled in conjunction with
Daugherty's most recent drilling programs. To date, Daugherty has connected
41 new wells into the new system. The Company's daily net gas production has
increased 65% to 1,700 Mcf per day and is expected to increase to 2,000 Mcf
per day during the month of October.
"This new gas gathering extension and compression will give us the
flexibility of an additional gas market to compliment our current marketing
efforts," said William S. Daugherty, President and CEO. "Also, our immediate
cash flow, net to the Company, will increase by over $100,000 per month at
$5.00/mcf gas prices."
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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