Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2005-04-01 19:24 ET - News Release



NEW YORK -- (Business Wire) -- April 1, 2005

Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced today
that its coal bed methane ("CBM") subsidiary based in Wyoming has
received a $75 million offer of senior debt for Phase I of its Wyoming
CBM project from one of the leading global investment banking,
securities and investment management firms. Additional funds will be
advanced during the first year as needed. The management of Digital
Gas' CBM subsidiary has decided to accept the offer. Digital Gas will
announce the closing date when it is set.
¶ The Wyoming CBM project consists of 54,150 proven coal rich acres
upon which there are currently 325 drilled wells which are producing
and near production. It is management's plan to bring the entire 325
wells online over the first several months of operation and then drill
and complete another 531 wells on this acreage over the next three
years. The new wells will be drilled down to the 2,000 to 5,000 foot
level, as compared to the prior wells that are mostly drilled to 1,500
feet or less. The projected cash flow from the project is strong
enough to repay the debt in three years.
¶ Based on the new developments in the company, Digital Gas signed a
letter of intent today with a full service investment banking firm
based in New York City that is focused on the needs of small to
midsized public companies, and late stage private companies. If the
mutual due diligence and negotiations are concluded successfully, the
investment bank will provide merger and acquisition strategies, make
recommendations on reverse mergers, IPOs and listing on the AMEX,
structuring shareholder communications programs and other services.
¶ Digital Gas also announces that it will shortly enter into
negotiations to develop fuel cell systems for a commercial real estate
development and management company seeking energy efficient and
environmentally friendly power generation.
¶ For further information: call Brian Smith [phone] or email
[e-mail]
Contacts:

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