LEXINGTON, Ky., Nov. 4 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that it has completed an oil and gas asset acquisition with
Environmental Energy, Inc., and its affiliated limited partnerships based in
Irvine, California.
The acquisition includes interests in 37 Appalachian Basin oil and gas
wells in Kentucky and Tennessee, and three gas wells in Louisiana. Also
included were several miles of natural gas pipelines and facilities located in
Scott and Morgan Counties, Tennessee.
Daugherty issued 1,024,923 shares of convertible preferred stock that is
convertible to common stock on a share-for-share basis within two years.
Warrants were also issued for shares that are exercisable at a range of $1.75
to $4.50 per share. Shareholders approved the acquisition at the June 30
Annual Meeting.
"This transaction provides the desired liquidity for our investors plus
the stock has potential for significant upside," said Environmental Energy
President Larry Crowder.
"The acquisition of these wells and pipeline assets continue our strategy
of increasing our revenue and reserve bases," stated Daugherty Resources
President William S. Daugherty. "The completion of this acquisition, coupled
with last month's acquisition of 24 wells, significantly increases our oil and
gas revenue by approximately 60%." Daugherty also has an agreement with
Environmental Energy to drill natural gas wells on acreage it holds for
development in the Appalachian Basin.
Environmental Energy and its affiliates operate as a vertically integrated
natural gas company with interests in natural gas wells and utilities in the
United States. Daugherty Resources is a natural resources development company
with interests in oil and gas development, wood products manufacturing and
gold mining prospects.
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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CONTACT:
William S. Daugherty, President of Daugherty
Resources, Inc., 606-263-3948, or fax, 606-263-4228
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