NGAS Resources (NGAS) Prices 3.96M Common Unit Offering at $1.31/Unit

NGAS Resources, Inc. (Nasdaq: NGAS) announced today that it has priced an underwritten offering of 3.96 million units, at a price to investors of $1.31 per unit for gross proceeds of approximately $5.2 million. After underwriting discounts and commissions and estimated offering expenses, NGAS expects to receive net proceeds of approximately $4.7 million. Each unit consists of one share of the company's common stock and a warrant to buy 0.4 of a share of common stock. The shares of common stock and warrants are immediately separable and will be issued separately. The warrants will be exercisable for four and one-half years, beginning on the issuance date, at an exercise price of $1.61 per common share. The offering is expected to close on or about May 17, 2010, subject to customary closing conditions.

Lazard Capital Markets, LLC is acting as the sole book-running manager for this offering. Wunderlich Securities, Inc. is acting as a co-manager.

NGAS intends to use the net proceeds from the offering to reduce outstanding borrowings under its revolving credit facility and for working capital and other general corporate purposes.