NGAS Resources Proved Reserves Top 100 Bcfe.

Reserves Increase 34.14%

Production Increases 57%

LEXINGTON, Ky. -- NGAS Resources, Inc. (Nasdaq: NGAS) today announced that its year-end 2006 proved reserves increased 34.4% to a record 100.9 billion cubic feet equivalents ("Bcfe"). Proved reserves were 97% natural gas, with 41% attributable to proved developed reserves. In accordance with SEC guidelines, reserve estimates do not include any probable or possible reserves from the Company's non-proved properties, which represent approximately 63% of its acreage. The reserve life index at the end of 2006 was 32.5 years based upon annualized fourth quarter production.

The Company's annual production in 2006 increased 57% to a record 2.9 Bcfe compared to 1.8 Bcfe in 2005. Production in the fourth quarter was 0.782 Bcfe, an increase of 54% over the prior year period and 13% higher than third quarter 2006 levels. The Company's average realized sales price for natural gas was $8.13 for the fourth quarter of 2006 and $8.23 per Mcf for the year as a whole.

"We are particularly excited about reaching the 100 Bcfe benchmark in proved reserves, which we achieved mostly through the drill-bit," commented William S. Daugherty, President and CEO. "Our drilling success and larger net position in new wells also contributed to record operational results for 2006, with production increasing 57%. Our strategy for continued growth in 2007 will include ongoing expansion of our gathering systems, additions to our lease position in key fields and increased interests in new wells."

During 2006, NGAS drilled 226 gross (65.5 net) wells with 46 gross (16.9 net) wells during the fourth quarter. This compares with 155 gross (44.2 net) wells in the prior year. The Company's development initiatives were focused on its Leatherwood field, with 100 wells drilled in 2006. Currently, there are 200 wells producing in Leatherwood. NGAS also constructed 104 miles of gathering lines in 2006, extending its gathering and transmission systems to a total of 530 miles.

About NGAS Resources

NGAS Resources is an independent exploration and production company focused on unconventional natural gas basins in the United States that support repeatable drilling opportunities, principally in the southern portion of the Appalachian Basin. Additional information, including the Company's annual report on Form 10-K for 2005 and its quarterly report on Form 10-Q for the third quarter of 2006, can be accessed on its website at www.ngas.com.

Forward Looking Statement

This release includes forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 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, and 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 United States Securities and Exchange Commission.