Category: Uncategorized
March 19, 2004

News Release: Daugherty Resources (NGAS) 2003 Oil &Gas Reserves Increase 46%

DAUGHERTY RESOURCES, INC. (Nasdaq: NGAS) today announced the Company's total proved reserves at December 31, 2003, were 31,371 Mmcfe, up 9,854 Mmcfe, or 46%, from December 31, 2002. For the year ended December 31, 2003, the Company increased its net oil and gas production to 485.9 Mmcfe, up 51% from 321.6 Mmcfe in the prior year. Daugherty's standardized measure of discounted future net cash flows (discounted at 10%) increased 60.35% to $33.597 million as of December 31, 2003, compared to $20.952 million as of December 31, 2002. Although natural gas and oil prices increased 9.6% and 10.9% respectively, the increase in reserves is primarily the result of the Company's drilling activities. 'The past year has been a substantial growth period for our company,' commented William S. Daugherty, President and CEO. 'We were able to drill 89 gas wells during the 2003 year with a 100% success rate. We expect 2004 reserves to rise dramatically because of programs and the number of wells we plan to drill in 2004.'

Wright and Company, a petroleum engineering firm located in Houston and Nashville, has compiled the Company's reserves for the past six years. Listed below is a summary of the Company's reserves for the years ending December 31, 2003, 2002 and 2001.

As of December 31,
Estimated Proved Reserves: 2003 2002 2001

Natural gas (Mcf)
Proved developed 12,345,355 7,151,933 5,881,153
Proved undeveloped 18,454,309 13,668,366 4,205,260

Total 30,799,664 20,820,299 10,086,413

Crude oil (Bbl)
Proved developed 85,253 106,106 123,196
Proved undeveloped 9,992 9,992 9,572

Total 95,245 116,098 132,768

Natural gas
equivalents (Mcfe) 31,371,134 21,516,887 10,883,021

Daugherty Resources is a natural resources company focused on natural gas development drilling and reserve growth. Based in Lexington, Kentucky, the Company specializes on developing geological prospects concentrated in the Appalachian Basin. Additional information about the Company is available at its website, .

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, business prospects, developments and results of the company. Actual performance, prospects, developments and results 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 drilling operations 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 Daugherty Resources, Inc.

William S. Daugherty, President and CEO of Daugherty Resources, Inc., +1-859-263-3948, or fax, +1-859-263-4228, or e-mail, This email address is being protected from spambots. You need JavaScript enabled to view it. (NGAS)

WEBSITE This email address is being protected from spambots. You need JavaScript enabled to view it.