LEXINGTON, Ky., Sept. 16 /PRNewswire/ -- Daugherty Petroleum, Inc., a
subsidiary of Daugherty Resources, Inc., (Nasdaq: NGASF) has received a
$1,000,000 revolving credit facility from Compass Bank, Houston, TX.
The facility is earmarked for funding Daugherty Petroleum's portion of the
first wells in the 100-well commitment Daugherty Petroleum signed in November
1997. The wells will be drilled on three farmouts covering 18,000 acres in
the Appalachian Basin. To date, Daugherty Petroleum has drilled 17 natural
gas wells on the farmouts and has experienced a 100% success rate. Gas wells
in the area are environmentally friendly; producing no water and averaging
1236 BTU. The estimated recoverable gas reserves are an average of 325
million cubic feet per well.
Through December 31, 1998, gas produced from new wells will be sold on
Daugherty's existing gas purchase contract with Southern Gas Company at $2.47
per MCF. Daugherty Petroleum's natural gas gathering system will be expanded
to transport the natural gas produced from the new wells. Currently, the
Company owns interests in and operates 80 gas wells and 31,000 undrilled acres
in Appalachia.
Daugherty Resources, Inc., based in Lexington, KY, 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' business and
prospects, are subject to a number of risks, including production variances
from expectations, uncertainties about estimates of reserves, volatility of
oil and gas prices, the need to develop and replace its reserves, the
substantial capital expenditures required to fund its operations,
environmental risks, drilling and operating risks, risks related to
exploratory and developmental drilling, 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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Company News On-Call:
http://www.prnewswire.com/comp/115373 or fax, 800- 758-5804,
ext. 115373 (NGASF)
CONTACT:
William S. Daugherty, President, Daugherty
Resources, Inc., 606-263-3948 or FAX: 606-263-4228
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