LEXINGTON, Ky., Oct. 23 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that it has signed a one year natural gas contract for
1,000 MCF (thousand cubic feet of gas) per day at $5.11 per MCF, commencing
November 1, 2000. This contract represents an increase in price of more than
100% over the current $2.50 per MCF contract that expires October 30, 2000.
The Company plans to market 60% of its gas production on fixed price
contracts over the next twelve months, with the balance to be sold on monthly
spot prices. Eighty percent of the Company's gas production has historically
been sold on fixed contracts, however, by selling only 60% of its gas on fixed
contracts will allow the Company to take advantage of expected price spikes
this winter.
Gas production in 2001 is expected to be up significantly over 2000 levels
when 23 new gas wells commence production as new transportation facilities are
completed. The company owns interests ranging between 25% to 33% in each of
the new wells.
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.daughertyresources.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.daughertyresources.com
CONTACT:
William S. Daugherty, President of Daugherty
Resources, Inc. 859-263-3948, or fax, 859-263-4228, or e-mail,
ngas@daughertyresources.com
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