NGAS Enters Agreement for Sale of Gas Gathering Assets

* Company Will Retain Firm Capacity Rights
* Transaction Will Strengthen Balance Sheet

LEXINGTON, Ky.--(Business Wire)--
NGAS Resources, Inc. (Nasdaq: NGAS) today announced that it has entered into an
asset purchase agreement with Seminole Gas Company, our gas processing partner,
for the sale of a 50% undivided interest in most of the company`s Appalachian
gas gathering facilities for $28 million. The portion of the company`s gas
gathering and midstream facilities covered by the purchase agreement spans 485
miles through parts of southeastern Kentucky, eastern Tennessee and western
Virginia. The sale is expected to close by the middle of June 2009, subject to
customary closing conditions.

Upon the closing of the sale, NGAS will enter into various gas marketing and
sales arrangements with Seminole Energy Services, the parent of Seminole Gas.
Under these arrangements, NGAS will remain operator of the facilities and will
have firm capacity rights for daily delivery of 30,000 Mcf of controlled gas
through the system. Seminole Energy will have a six-month option to purchase
NGAS` remaining 50% interest for $22 million. Under certain conditions, NGAS
will have the right to require Seminole Energy to exercise its purchase option.

William S. Daugherty, President and CEO of NGAS Resources, commented "We look
forward to enhancing our existing relationship with Seminole." Added, Mr.
Daugherty, "This will be a significant liquidity event for our company. The
proceeds from the sale will enable us to strengthen our balance sheet by
reducing our outstanding debt and providing financial flexibility." Mr.
Daugherty further commented, "We have reserved more than sufficient firm
capacity to ensure that we are able to move to market our Appalachian gas
production on a long-term basis."

"This transaction extends our footprint in the Appalachian Basin, where we have
already invested in the area's future growth," said Robert Rosene, chairman and
CEO of Seminole Energy Services. "NGAS is an excellent partner in two other gas
processing facilities we hold jointly. We look forward to expanding this
relationship," he added.

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 10-K, proxy
statement and periodic reports can be accessed on its website at www.ngas.com.

About Seminole Gas Company

Privately held, Tulsa-based Seminole Gas Company a wholly owned subsidiary of
Seminole Energy Services LLC provides midstream services in Oklahoma, Kansas,
Kentucky, Tennessee and Texas. Seminole Energy Services (www.seminoleenergy.com)
and its subsidiary, Seminole Gas Company, provides "wellhead-to-burnertip"
natural gas midstream and marketing services to end users and producers
throughout the central United States. In Illinois and Michigan, Seminole
operates under its affiliate brands, Vanguard Energy Services and Lakeshore
Energy Services, respectively. Seminole`s customer base today numbers over 3,000
customers with average daily sales of 900 million cubic feet.

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.

Company:
Michael P. Windisch, CFO, 859-263-3948
FAX: 859-263-4228
ngas@ngas.com

Copyright Business Wire 2009