LEXINGTON, Ky., Oct. 18 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
today provided an update of its operating activities for the third quarter
2001 along with an outlook of projects that will commence during the forth
quarters 2001.
"We had a very active quarter," stated William S. Daugherty, President and
CEO. "This year we have drilled and completed an excellent group of gas wells
that will add significantly to our cash flow. Our production and revenues
grew substantially in the first six months of 2001, when compared to the first
six months of 2000. Oil and gas production grew by 15.9% during the period
while production revenues increased 179% from $325,149 to $906,130."
The company is presently marketing two drilling partnerships that will
provide up to 24 additional wells to be drilled in 2001 and first quarter
2002. Daugherty will own 25% working interest in the wells drilled by the
partnerships.
Kay Jay Field, Knox County, Kentucky
Since July 1, 2001 Daugherty Resources has drilled four successful wells
on its 14,000 acre Kay Jay Farmout, making a total of 46 successful gas wells
on the prospect. Total drilling depth averaged 3,168 feet per well and
commercial gas was encountered in the Devonian Shale and Waverly Formations in
all four wells. One well has been treated and the other three are ready for
treatment. It is anticipated that all four wells will be on line by
November 1, 2001. Daugherty has a 25% working interest in the wells.
Of 11 wells Daugherty drilled in the first quarter 2001 in the Kay Jay
field, seven are in production and the remaining four will be placed on line
by November 1, 2001.
Twenty proved undeveloped drilling locations have been identified in the
Kay Jay Field. The Company anticipates that twenty wells will be drilled in
the Field in the fourth quarter 2001 and first quarter 2002. Daugherty will
own 25% working interest in these new wells.
Golden Creek Field, Knox County, Kentucky
The Lake Mays #1 well was drilled and placed into production during
August 2001. The well's open flow test was 1.4 million cubic feet of gas per
day from the Big Lime Formation. Daugherty owns 50% working interest in the
well.
Fonde Gas Field, Bell County, Kentucky
Daugherty has started the process of completing 13 additional wells in the
Fonde Field that have previously been shut-in because of pipeline capacity
restraints. During the third quarter, six of the shut-in wells were completed
and they are now producing at an average of over 100 MCFD. The remainder of
the previously shut-in wells will be completed as pipeline capacity becomes
available.
All 17 wells drilled to date in the Fonde Field are successful. Daugherty
owns 33.3% working interest in 15 wells, 50% working interest in one well and
75% working interest in one well. Although 13 new proven undeveloped drilling
locations have been identified, the Company does not expect to drill
additional wells in this field until 2002.
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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