002.Bill Daugherty

8/8/2019 002.Bill Daugherty

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DUG EastTempting Targets in the Southern Appalachian Basin

PittsburghNovember 3, 2010

www.ngas.com


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Disciplined growth through the drillbit

Exploit horizontal drilling potential of prospects

Add acreage opportunistically

Recent success into Weir Sand oil and gas formation increases oil exposure

400 potential drilling locations on 70,000 acres

Drilling program results in predictable production growth

Drilling funded from cash flow

Limited financial risk

Drilling with partnerships and JV partners to prove up additional reserves

Strategy


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Southern Appalachian Basin98% successful completion

rateMultiple, low-risk payzonesDevonian Shale consists ofCleveland; upper, middle andlower Huron sections

Long-lived asset base withrepeatable drilling1,200 Btu dry gasPipeline infrastructure enablesus to move gas to the market

Core Area


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Appalachian Lease Position315,000 acres

220,000 acresundeveloped

Large undevelopedareas due to coalmining activities

Well developedgathering infrastructure

New horizontal drillingtechnology increasingoil and gas recoveries


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Drilled first verticalwell in 1989

Drilled first horizontalwell in February 2008

56 on line

Operating 1,000vertical DevonianShale wells

NGAS History in Devonian Shale


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Structurally

uncomplicatedUniform structurethroughout area ofinterestGood control with over1,000 verticalwellboresPredictable declineratesNo water challenges

Devonian Shale - Huron/Cleveland Sections


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315,000 acres

Drilled 56 Huron/ClevelandShale wells

2,000 potential horizontaldrilling locations

$1.0 MM average costsUp to 1.1 Bcfe EUR/well

Extending lateral legs out4,700 feet

Horizontal Devonian Shale Play


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Increased oil and gas production accelerates value creationNew technology drives cost of oil and gas finding costsdownUses existing pipeline infrastructure to move gasAdds to operational flexibility

Reduces total wellsite footprint One horizontal location replaces three four vertical locations Pad drilling - multiple horizontal wells on single location

Allows access to development of areas otherwiseinaccessible due to coal mining activities or difficult terrain

Horizontal Drilling Upside


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315,000 acres

2,000 potential locations

Improved economics withextended laterals

Environmentally sounddrilling and fracingoperations Drilling with air Nitrogen fracing no fluids

are used on shale zones

Horizontal Devonian Shale Play Summary


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Increases oil exposure

70,000 acres78 producing vertical wells2 horizontal test wells

Weir Well #1- 2,040 horizontal leg- 10-stage water frac

Weir Well #2 2,500 horizontal leg 12-stage foam frac

Significant growth potential 400 horizontal drilling

locations, risked at 40%

Weir Sand Oil & Gas Prospect


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NGAS is the operator30,000 Mcf/d firm capacityLarge area of controlStreamlines gastransportation

90% of NGAS productiongoes direct from wellheadto interstate pipeline

Pipeline willaccommodate 60,000Mcf/d

Gathering System Infrastructure


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Processes up to 25,000Mcf/d

Expandable design;second 25,000 Mcf/dcapacity equipment instorage

Selling 43,500 gallons/day

Straddles East TennesseeInterstate Pipeline

50/50 JV with SeminoleEnergy

Rogersville Liquids Processing Plant


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TVA Building 880MW Gas-Fired Plant5.5 miles fromRogersville gasprocessing plant(John Sevier plantsite)160,000 Mcf/dmaximum naturalgas fuel burnFall 2011completion date


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TVA John Sevier

880 MW gasplantTVA plans to idlenine coal-firedunits

Progress Energyto close 11 coal-fired plantsDuke Power toclose 18 coal-fired plants

Southeast Utilities Ups Plans to Replace Coal-Fired Plants


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Illinois Basin / New AlbanyShale

45,000 acres 40 wells (3 horizontals) New gathering system

Arkoma Basin CBM (25%working interest)

51 horizontal wells 15 vertical wells

West Virginia Devonian ShaleinterestsWilliston Basin Bakken Play

Dunn County, ND overrideson 18,000 acres

Exposure to Other Basins


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Large land position (315,000 gross acres)

220,000 undeveloped acresPredictable reservoir characteristics

1,000 vertical control wells

Generous takeaway to markets with premium pricing NGL processing facility on line

No water challenges Drilling with air Fracing with nitrogen

Ample equipment and services available

NGAS Devonian Shale Advantages


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Large unconventional resource base 360,000 acres (gross)

Ample gathering/processing facilitiesProven horizontal drilling/completiontechnologyInterests in over 1,400 producingwellsDrilling partnerships prove up acreageposition

Shares development costs Substantial back-in interest after

payout

Increased oil exposure in Weir Sand 70,000 acres to develop 400 potential horizontal locations

NGAS Summ ary


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Forward-Looking StatementCorporate OfficeNGAS Resources, Inc.120 Prosperous PlaceSuite 201Lexington, KY 40509859.263.3948859.263.4228 (Fax)Website: www.ngas.com

ContactsWilliam S. DaughertyPresiden t & CEO

D. Michael WallenExecutive Vice President

A number of statements made during the company'spresentation, other than statements of historical fact,may be forward-looking within the meaning of Section21E of the Securities Exchange Act of 1934. Thesestatements involve risks and uncertainties that couldcause actual results to differ materially from thoseexpressed or implied in those statements due toeconomic conditions and other risks, uncertainties

and circumstances partly or totally outside the controlof the company, including risks of productionvariances from expectations, volatility of productprices, the availability of capital to fund drilling and theability of the company to implement its businessstrategy. These and other risk factors are describedin the company's annual report on Form 10-K for 2009which is available on the companys website. Thecompany will not necessarily update any of theforward-looking statements except as required by law.

Documents

002.Bill Daugherty