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LEXINGTON, Ky., Dec. 15, 2004 (PRNewswire-FirstCall) -- NGAS Resources, Inc. 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.
About Duke Energy [ www.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.
About NGAS Resources [ www.ngas.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.
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