NGAS Resources Provides Operational and Planning Update

* 20 Horizontal Wells Drilled in 2008
* 53 Wells Planned for 2009 Horizontal Drilling Program

LEXINGTON, Ky.--(Business Wire)--
NGAS Resources, Inc. (Nasdaq: NGAS) today provided an update on its 2008
horizontal drilling operations and its strategy for capitalizing on this
technology throughout its unconventional shale plays in the Appalachian and
Illinois Basins.

Devonian Shale Success. Since February 2008, the company has been using advanced
air-driven horizontal drilling and staged completion technology with encouraging
results for its key Leatherwood field in eastern Kentucky. Each well has a
single lateral leg averaging 3,500 feet through the Devonian shale, which is
present throughout the company`s Appalachian properties. The company drilled 20
horizontal wells last year in Leatherwood. Initial 30-day production rates for
the first 16 horizontals averaged 315 thousand cubic feet per day. The company
has an average working interest of 56% in these wells, and the mineral interest
owners retained the balance under their participation rights for Leatherwood.
The company plans 25 horizontals in Leatherwood and 23 additional horizontals in
its other core Appalachian fields during 2009.

Illinois Basin Expansion. The company continues to develop its Illinois Basin
play, which now spans approximately 43,000 acres in western Kentucky. After
drilling 35 vertical wells since its discovery in 2006, the company drilled its
first two horizontal wells through the New Albany shale, which blankets the
acreage at depths ranging from 2,600 to 2,800 feet. Initial production rates for
these Illinois Basin horizontals have been very encouraging. The company
completed the gathering and processing facilities for this acreage late in the
third quarter last year and plans to drill at least five New Albany shale
horizontals during 2009.

Fixed-Price Physical Delivery Contracts. To address commodity price volatility,
the company uses fixed-price, fixed-volume physical delivery contracts that
cover portions of its natural gas production at specified prices during varying
periods of time. These are not treated as financial hedging activities and are
not subject to mark-to-market accounting. Currently, the company has contracts
in place for the following portions of its anticipated 2009 natural gas
production.

Fixed-Price Physical Delivery Contracts
For 2009 Natural Gas Production

Q1 Q2 Q3 Q4
Percent of gas contracted 57% 46% 30% 24%
Average price per Dth $ 8.73 $ 8.79 $ 8.78 $ 8.68
Average price per Mcf 9.68 9.70 9.69 9.58

Credit Facility Status. The borrowing base of the company`s revolving credit
facility has been reset at $80 million. As of December 31, 2008, the company has
$72 million drawn and is in compliance with its covenants under the facility.

Reduced Capital Expenditure Budget. The company plans to resume its use of
drilling partnerships with outside investors to participate in ongoing
development of its operated gas fields. Although this will reduce the company`s
working interests in new horizontal wells, the return to its historical business
model for sharing development costs is designed to enable the company to meet
its 2009 drilling commitments for core properties. Based on current market
conditions, the company plans to reduce its 2009 capital expenditure budget to
approximately $15 million, and still drill 53 gross horizontal wells. The
company expects to maintain working interests of 20% before program payout and
35% thereafter.

Management Comments. William S. Daugherty, President and CEO of NGAS Resources
commented, "While the economic environment remains challenging for our industry,
NGAS is taking actions to build a stronger company for the future. We are very
pleased with results from our transition to horizontal drilling and are well
positioned to capitalize on these opportunities through our proven drilling
partnership structure and sales network, which raised over $34 million for our
non-operated initiatives in 2008." Mr. Daugherty added, "Our horizontal drilling
advances have the potential to significantly increase production and reserves
for the company over the long term, both from Leatherwood and our other core
areas in the Appalachian and Illinois Basins. When market conditions permit, we
will resume our strategy for retaining more of our available working interest in
these plays."

About NGAS Resources

NGAS Resources is an independent exploration and production company focused on
unconventional natural gas basins in the United States that provide repeatable
drilling opportunities, principally in the southern portion of the Appalachian
basin. Additional information, including the company`s most recent periodic
reports and proxy statement, can be accessed on its website at www.ngas.com.

Forward Looking Statement

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 and prospects. Actual performance and
prospects 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 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 Securities and Exchange Commission.

NGAS Resources, Inc.
Michael P. Windisch, CFO, 859-263-3948
Fax: 859-263-4228
ngas@ngas.com

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