EXHIBIT 20.1

                                                                    NEWS RELEASE

DAUGHERTY RESOURCES, INC.
120 Prosperous Place, Suite 201, Lexington, KY 40509

FOR IMMEDIATE RELEASE

Investor Relations Contact: Michael P. Windisch
Phone: (859) 263-3948
E-mail: ngas@ngas.com

          DAUGHERTY RESOURCES (NGAS) REPORTS $5,832,450 EQUITY INFUSION

Lexington, Kentucky, April 29, 2004. Daugherty Resources, Inc. (Nasdaq: NGAS)
today announced a $5,832,450 equity infusion by institutional investors. The
Company issued a total of 975,000 shares of its common stock to the investors at
$5.982 per share, reflecting the stock's average closing bid price for the five
trading days preceding the date of the purchase agreement for the private
placement. The newly issued equity increased the Company's total common stock
currently outstanding to 14,117,594 shares.

"The success of our ongoing drilling, plus continuing strength in natural gas
prices, has contributed to our record performance and generated opportunities
for attracting investment capital to sustain our growth," said William S.
Daugherty, President and CEO of Daugherty Resources. "We plan to use the
proceeds from this private placement to fund part of our 2004 drilling and
pipeline construction initiatives in our core Appalachian Basin operating
areas."

Investors in the private placement also received three-year warrants to purchase
up to 292,500 additional common shares at an exercise price of $6.25 per share.
The purchase agreement for the private placement provides for the Company to
register the newly issued shares and any shares purchased under the warrants for
resale on behalf the investors.

Investment banking services for the transaction were provided to the Company by
The Shemano Group, Inc., headquartered in San Francisco, California. The Shemano
Group received a 7% fee and a five-year warrant to purchase up to 38,025 shares
of the Company's common stock at $6.25 per share.

Daugherty Resources is a natural resources company focused on natural gas
development drilling and reserve growth. Based in Lexington, Kentucky, the
Company specializes on developing geological prospects concentrated in the
Appalachian Basin. Additional information about the Company is available at its
website, www.ngas.com.

This Release includes forward looking statements within the meaning of Section
21E of the Securities Exchange Act relating to matters such as anticipated
operating and financial performance, business prospects, developments and
results of the Company. Actual performance, prospects, developments and results
may differ materially from anticipated results due to economic conditions and
other risks, uncertainties and circumstances partly or totally outside the
control of the Company, including risks of production variances from
expectations, volatility of product prices, the level of capital expenditures
required to fund drilling operations and the ability of the Company to implement
its business strategy. These and other risks are described in the Company's
periodic reports filed with the United States Securities and Exchange
Commission.