LEXINGTON, Ky., Dec. 15 /PRNewswire-FirstCall/ -- NGAS Resources, Inc.
(Nasdaq: NGAS) today announced that its subsidiary, Daugherty Petroleum, Inc.,
has entered into an agreement with Duke Energy Gas Services to operate and
maintain the Stone Mountain natural gas gathering system owned by Duke Energy.
The Stone Mountain system interconnects with Duke Energy's East Tennessee
Natural Gas pipeline at Rogersville, Tennessee. Located in southeastern
Kentucky, western Virginia, and northeastern Tennessee, the system consists of
50 miles of natural gas production lines, 100 miles of natural gas gathering
lines, five delivery measuring and regulation stations, four compression
stations, and a liquids extraction plant.
"Our operation of the Stone Mountain natural gas gathering system for Duke
Energy will enhance our operating and production position in our core area
while also adding to our ongoing profitability," said William S. Daugherty,
president and CEO of NGAS. "The system connects our Stone Mountain properties
purchased on October 12th from Stone Mountain Energy, L.C., as well as our
Straight Creek Field to markets on the East Tennessee system. Gas production
from our Leatherwood Field can also move through the Stone Mountain system
when our 8-inch gathering line is completed."
"We are pleased to finalize the agreement with NGAS to operate our Stone
Mountain system," said Pat Whitty, vice president of marketing and business
development for East Tennessee Natural Gas, a 1,269-mile pipeline system that
serves the southeast United States. "This arrangement enhances our ongoing
growth strategy to secure additional supply and provide optionality to our
East Tennessee Natural Gas system customers."
Duke Energy Gas Services and East Tennessee Natural Gas are units of Duke
Energy Gas Transmission, a North American leader in developing energy
infrastructure and connecting major natural gas supply basins to growing
markets. The company's natural gas operations include more than 17,500 miles
of transmission pipeline and about 250 billion cubic feet of storage capacity
in Canada and the United States. More information on DEGT can be found
at: http://www.degt.duke-energy.com .
Duke Energy is a diversified energy company with a portfolio of natural
gas and electric businesses, both regulated and unregulated, and an affiliated
real estate company. Duke Energy supplies, delivers and processes energy for
customers in North America and selected international markets. In 2004, the
company celebrates a century of service with the 100th anniversary of its
electric utility Duke Power. Headquartered in Charlotte, N.C., Duke Energy is
a Fortune 500 company traded on the New York Stock Exchange under the symbol
DUK. More information about the company is available on the Internet
at: http://www.duke-energy.com .
NGAS Resources is a natural resources company focused on natural gas
development drilling and reserve growth. NGAS controls approximately 250,000
acres in the Appalachian Basin where it owns 154 miles of gas gathering lines
and interest in over 575 wells. Based in Lexington, Kentucky, the Company
specializes in developing its own geological prospects concentrated in the
Appalachian Basin. Additional information about the company can be accessed on
its website at: http://www.ngas.com .
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, Inc.
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Related links:
http://www.ngas.com
http://www.degt.duke-energy.com
http://www.duke-energy.com
CONTACT:
Media, Teresa Barnes, +1-859-263-3948, or
cell, +1-303-521-4080, or ngas@ngas.com ; or Investor Relations,
Michael P. Windisch, +1-859-263-3948, or Fax, +1-859-263-4228, or
ngas@ngas.com , both of NGAS Resources, Inc.
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