LEXINGTON, Ky., Dec. 8 /PRNewswire/ -- Daugherty Resources (Nasdaq: NGAS)
announced today that it has completed the sale of Red River Hardwoods, Inc.,
an 80% owned subsidiary, to H&S Lumber, Clay City, Kentucky.
Red River Hardwoods, a hardwood dimension production facility located in
Clay City, Kentucky, was Daugherty's only entry into the wood products
business. "The sale of Red River for $537,000 and the purchaser's assumption
of Red River liabilities increases shareholders' equity in the parent company
by approximately $1.4 million and will result in a significant reduction of
our operating losses," stated Daugherty's CEO William S. Daugherty. "It also
allows our management team to concentrate on our strategy of increasing our
oil and gas assets."
Mr. Daugherty continued, "Red River losses in 1998 exceeded $600,000.
With the elimination of Red River's ongoing losses and the added revenue from
two recent acquisitions, our financial performance should improve by about
$80,000 per month."
The sale of Red River Hardwoods, Inc. was effective June 30, 1999.
Accordingly, the Company plans to restate its financial statements for the
second and third quarters of 1999 to reflect the sale.
Daugherty Resources is a natural resources development company with
interests in oil & gas development 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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