EXHIBIT 20.1
                                                                    NEWS RELEASE

FOR IMMEDIATE RELEASE
JUNE 13, 2003

                               DAUGHERTY RESOURCES
                      COMPLETES $2,565,000 EQUITY INFUSION

         LEXINGTON KENTUCKY - DAUGHERTY RESOURCES, INC. (Nasdaq: NGAS) today
announced a $2,565,000 equity infusion by a group of private investment funds.
The Company issued a total of 900,000 shares of its common stock to the
investors at $2.85 per share, based on a 15% discount to the stock's market
price when an agreement in principal for the transaction was reached. The newly
issued shares increased the Company's total common stock currently outstanding
to 7,425,196 shares.

         The private placement was covered by a Securities Purchase Agreement
dated as of June 10, 2003 (the "Purchase Agreement"). Under the Purchase
Agreement, the investors also received three-year warrants to purchase up to
180,000 additional common shares at an exercise price of $4.80 per share. The
Purchase Agreement provides for the Company to register the newly issued shares
and any shares purchased under the warrants for resale on behalf the investors.

         The investors are Crestview Capital Fund I, LP, Crestview Capital Fund
II, LP, Crestview Capital Offshore Fund, Inc., Cranshire Capital L.P., and
Baystar Capital Management, LLC. Investment banking services for the transaction
were provided to the Company by The Shemano Group, Inc., headquartered in San
Francisco, California, which received a 7% fee and a five-year warrant to
purchase up to 32,400 shares of the Company's common stock at $4.80 share.

         William S. Daugherty, President and CEO of the Company, commented "We
are very pleased to complete this private placement. It provides us with the
financial flexibility to increase the Company's participation in our successful
drilling operations, including development of our recently acquired Leatherwood
Prospect located in the Big Sandy Gas Field in the Appalachian Basin."

         Stewart Flink, Managing Member of Crestview Capital Funds, added "After
visiting Daugherty's natural gas fields, I was thoroughly impressed with the
Company's operations and efficiencies. It is evident that the Company has a
geographic niche for low-cost gas production in its area of expertise that
should support significant further development."

         Daugherty Resources is a natural resources company with assets in oil
and gas as well as gold and silver properties. Based in Lexington, Kentucky, the
Company focuses on natural gas reserve growth through low risk developmental
drilling and acquisitions. The Company specializes on developing its own
geological prospects concentrated in the Appalachian Basin.