NGAS Sells Williston Basin Lease Position

NGAS Resources, Inc. said that it closed the sale of its lease position in Dunn County, North Dakota. The divesture covered 100% of the working interests in undeveloped oil and gas leases totaling 18,441 gross (14,865 net) acres acquired under its leasing program initiated in 2005. The sale to an undisclosed buyer for $4.8 million resulted in an after-tax gain of approximately $1.6 million or $0.07 per share. In addition to the cash consideration, the company will retain an overriding royalty interest in the lease position of up to 1.35%.

William S. Daugherty, President and CEO of NGAS Resources commented, "We are pleased with the results of this non-core asset divestiture in the Bakken Play in North Dakota. Our management team recognized this opportunity and its execution resulted in a significant one-time gain. Obviously, the company's core area is the Appalachian Basin; however, we will continue to pursue opportunities outside the Basin that create value for our shareholders."

NGAS Resources is an independent exploration and production company focused on unconventional natural gas basins in the United States that support repeatable drilling opportunities, principally in the southern portion of the Appalachian Basin.