LEXINGTON, Ky., Oct. 28 /PRNewswire-FirstCall/ -- NGAS Resources, Inc.
(Nasdaq: NGAS) today announced that its 2004 Year End drilling partnership has
closed with the maximum allowable subscriptions of $20.8 million. This
compares to $12.6 million that was raised in its Year End 2003 partnership.
The partnership will participate in 90 wells that will be drilled on NGAS
prospects in the southern Appalachian Basin.
NGAS continued its increased participation by purchasing a 30 percent
working interest in each well. After the partnership receives 110 percent of
its original investment, NGAS' working interest will increase from 30 percent
to 45 percent in each well. NGAS plans to drill all 90 wells by March 31,
2005.
"Higher energy prices have made investing in drilling much more appealing
than in past years," said William S. Daugherty, President & CEO of NGAS. "With
U.S. natural gas demand growing and production declining, we expect natural
gas prices to remain strong, which should enhance our shareholder value
through continued revenue growth."
NGAS closed its first 2004 drilling partnership for 50 wells in May.
Combined, the 2004 programs funded 140 wells on investor subscriptions of
$31.3 million. NGAS will introduce its initial 2005 drilling partnership in
January.
NGAS Resources is a natural resources company focused on natural gas
development drilling and reserve growth. The Company changed its name from
Daugherty Resources in June 2004. Based in Lexington, Kentucky, the Company
specializes in developing geological prospects concentrated in the Appalachian
Basin.
This release includes forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act relating to matters such as
anticipated operating and financial performance and prospects. Actual
performance and prospects may differ materially from anticipated results due
to economic conditions and other risks, uncertainties and circumstances partly
or totally outside the control of the company, including risks of production
variances from expectations, volatility of product prices, the level of
capital expenditures required to fund ongoing drilling initiatives and the
ability of the company to implement its business strategy. These and other
risks are described in the company's periodic reports filed with the United
States Securities and Exchange Commission.
SOURCE NGAS Resources
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Related links:
http://www.ngas.com
CONTACT:
Michael P. Windisch of NGAS Resources,
+1-859-263-3948, or fax, +1-859-263-4228, or ngas@ngas.com
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