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COPYRIGHT 2005 Hart Publications, Inc.
Oil and Gas Investor: Describe the strategy that drives your company.
Daugherty: NGAS is an Appalachian natural gas producer with interests in 680 oil and gas wells. At year-end 2004, we had 66 billion cubic feet of proven gas reserves in the Appalachian Basin. Our drilling is concentrated in large tracts of properties that are near other producing wells, but have not been drilled primarily because of coal mining operations going on in the area in the past years. As a result, the oil and gas reserves have not been developed. Many times the oil and gas minerals are owned by entities separate from the coal mineral owners and the surface owners. We target areas that have significant potential for oil and gas development, and importantly, we try to control as much acreage in those particular areas as possible. It is a simple strategy. Last year, we drilled 155 wells, and this year we expect to drill around 170 wells on 255,000 acres that we control.
OGI: Do you have plans to expand to any new core areas?
Daugherty: Our area of expertise and key focus is the Appalachian Basin. So, when we look to add properties, we're looking at other areas that are...
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