LEXINGTON, Ky., Nov. 29 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that it has completed a new addition to its natural gas
gathering system serving its Kay Jay Gas Field located in Knox County,
Kentucky. Currently, the Company has 32 natural gas wells located in the Kay
Jay Field with approximately 80 additional drilling locations.
The new addition consists of 70,000 feet of four-inch pipeline and a 360
Ajax compressor. The compressor and new pipeline have been tested and three
shut-in natural gas wells have been connected to the system with six shut-in
wells remaining to be connected. The new gathering line will permit the
Company to move additional gas from the existing shut-in wells and from future
wells it expects to drill in the Kay Jay Field.
The Company recently entered into two contracts covering one thousand five
hundred dekatherms (1,500 dth) per day through November 1, 2001 at an average
price of $5.04 per MCF (1,000 cubic feet), net of transportation expense. The
remainder of the Company's natural gas production is sold on the spot market.
Daugherty Resources further announced that its net production for the
third quarter 2000 increased 64.34% over third quarter 1999 levels. The
Company sold 75,305 MCF equivalent in the third quarter 2000 compared to
45,822 MCF equivalent sold in the third quarter 1999.
In order to accommodate year-end drilling programs, a drilling contract
has been signed with Anaconda Drilling of Kentucky, LLC to provide contract
drilling services for 25 wells in the Appalachian Basin. The drilling
contract was executed to insure the timely availability of drilling rigs and
protects the Company from escalating prices that could arise as a result of
anticipated rig shortages.
Based in Lexington, Kentucky, Daugherty Resources is a natural resources
development company with interests in natural gas and oil 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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