Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2004-07-30 20:23 ET - News Release



NEW YORK -- (Business Wire) -- July 30, 2004

Digital Gas, Inc. (OTC Pink Sheets:DIGG) -- Digital
Gas, Inc. announced that the final documentation for the financing of
the acquisition of SunWest SEK LLC was received today and the funding
placement document will be submitted for final approval early next
week. Based on the quality of the submission, the company anticipates
receiving an offer for a five (5) year loan for $50 million to
consummate the acquisition of SunWest SEK, other gas company or lease
acquisitions, the drilling and completion of 300 coal bed methane gas
wells and working capital.
¶ The property portion of the acquisition of SunWest SEK has been
expanded from 10,000 to 13,000 acres to account for leases not
included at the signing of the letter of intent with SunWest
Petroleum. The cash portion of the purchase price has been expanded by
$500,000 to $11.25 million as a result of SunWest SEK securing for
Digital Gas 10,000 additional acres in Labette County in close
proximity to leases currently being drilled by Quest Resource
Corporation ("QRCP"). This last acreage brings the total land position
in the SunWest SEK transaction to 23,000 acres. These properties, as
well as property of pending acquisitions, are all in the highly
productive Cherokee Basin in Southeastern Kansas.
¶ Based on the company's due diligence, the quality of the
operations of the target acquisitions and the additional acreage, it
was determined that the cash flow would be more than adequate to
retire the debt within five (5) years and begin paying dividends in
the last quarter of 2005. It was previously announced that the company
would seek a ten (10) year loan.
¶ Digital Gas also announced today that its Energy Savings &
Security subsidiary will conduct a test of the HVAC Controller
(heating ventilating & air conditioning) in a major hotel in New York
City during August. If this final test is successful and the results
documented, the company will present the HVAC controller to two major
international real estate investment advisory and management companies
that its agent has been negotiating with.
¶ For further information: call Brian Smith 732-927-4073 or email
[e-mail]
Contacts:

Digital Gas, Inc.
Brian Smith, 732-927-4073
[e-mail]
Source: Digital Gas, Inc.