Replies to post #103 on NGAS Resources (NGAS)

[mlkrborn]

Details of share sale:Dilution in the short run but ok for the long run.. Better property acquired while another being disposed..
"NGAS Resources Announces Pricing of Common Stock and Warrant Offering
8:31a ET August 6, 2009 (GlobeNewswire)

NGAS Resources, Inc. (Nasdaq:NGAS) announced today that it has priced a registered direct public offering of 5.4 million units, at a price of $1.90 per unit, for proceeds of approximately $10.3 million before underwriting discounts and offering expenses. Each unit consists of one share of the company's common stock and a warrant to buy 0.5 share of common stock. The warrants will be exercisable for four years, beginning six months after issuance, at $2.35 per common share. The transaction is expected to close on or about August 11, 2009, subject to customary closing conditions.

BMO Capital Markets Corp. is acting as sole underwriter for this offering.

The company intends to use the net proceeds from the offering to reduce its outstanding borrowings under its revolving credit facility. Completion of the offering will also enable the company to require the exercise of an option issued to Seminole Energy Services, LLC in July 2009 for the purchase of the company's remaining 50% interest in its Appalachian gas gathering system for $22 million. The purchase price under the option will be payable by Seminole Energy $7.5 million upon closing and the balance over 30 months, with interest at 8% per annum.

William S. Daugherty, CEO of NGAS, commented "The capital raise and proceeds from the sale of our remaining Appalachian gas gathering assets will significantly improve the financial flexibility of the company." Mr. Daugherty added, "This will enable us to continue growing the company."

[mlkrborn]

REMINDER Never forget dilution level! THILOUD-- NKING

globenewswire
NGAS Resources Announces Resizing Common Stock and Warrant Offering

* Press Release
* Source: NGAS Resources, Inc.
* On Monday August 10, 2009, 7:00 pm EDT


LEXINGTON, Ky., Aug. 10, 2009 (GLOBE NEWSWIRE) -- NGAS Resources, Inc. (Nasdaq:NGAS - News) announced today that it has replaced its previously reported offering of 5.4 million units with a new registered direct public offering of 3.48 million units at the same offering price of $1.90 per unit. The resized offering was conducted by the company and its underwriter to ensure compliance with NASDAQ listing standards. The other terms of the transaction are unchanged from the previously reported offering. The company's proceeds will be approximately $6.6 million before underwriting discounts and offering expenses. Each unit consists of one share of the company's common stock and a warrant to buy 0.5 share of common stock, for a total of 1.74 million warrants. The warrants will be exercisable for four years, beginning six months after issuance, at an exercise price of $2.35 per common share. The transaction is expected to close on or about August 13, 2009, subject to customary closing conditions.