<PAGE>   1
================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  -------------

                                   FORM 10-QSB


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000

                                       OR

                TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
             FOR THE TRANSITION PERIOD FROM _________ TO ___________

                         COMMISSION FILE NUMBER: 0-12185
                                  -------------

                            DAUGHERTY RESOURCES, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

           PROVINCE OF BRITISH COLUMBIA                         NOT APPLICABLE
 (State or other jurisdiction of incorporation or              (I.R.S. EMPLOYER
                   organization)                             IDENTIFICATION NO.)

      120 PROSPEROUS PLACE, SUITE 201
            LEXINGTON, KENTUCKY                                  40509-1844
 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                        (ZIP CODE)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (606) 263-3948
                                  -------------

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X   No    .
                                             ---     ---

         THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE REGISTRANT'S CLASSES OF
COMMON STOCK, AS OF MARCH 31, 2000, WAS 2,520,628.

         Transitional Small Business Disclosure Format (check one):  Yes  No X .
                                                                        --  --


================================================================================

<PAGE>   2

                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

         The information required by this Item 1 appears on pages 8 through 11
of this Report, and is incorporated herein by reference.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

         The following is a discussion of the Company's financial condition and
results of operations. This discussion should be read in conjunction with the
Financial Statements of the Company described in Item 1 of this Report.
Statements contained in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations," which are not historical facts may be
forward looking statements. Reliance upon such information involves risks and
uncertainties, including those created by general market conditions, competition
and the possibility that events may occur which could limit the ability of the
Company to maintain or improve its operating results or execute its primary
growth strategy. Although management believes that the assumptions underlying
the forward-looking statements are reasonable, any of the assumptions could be
inaccurate, and there can be no assurances that the forward-looking statements
included herein will prove to be accurate. The inclusion of such information
should not be regarded as a representation by management or any other person
that the objectives and plans of the Company will be achieved. Moreover, such
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward-looking statements
that speak only as of the date hereof.

         Daugherty Resources, Inc., formerly Alaska Apollo Resources Inc., (the
"Company" or the "Registrant") is a diversified natural resources company with
assets in oil and gas, and gold prospects. Originally formed in 1979 to develop
gold properties, the Company in the fourth quarter of 1993, acquired its wholly
owned subsidiary, Daugherty Petroleum, Inc.

         Since acquiring Daugherty Petroleum, Inc., the Company has increased
its reserves through the acquisition of oil and gas properties in the
Appalachian and Illinois Basins, and the drilling of wells in the Appalachian
Basin through joint venture and turnkey drilling programs, where Daugherty
Petroleum, Inc. is the primary decision maker. The Company continues to
aggressively seek acquisitions and drilling programs.

LIQUIDITY

         The Company continues its tradition of realizing revenues from its oil
and gas operations. For the three months ending March 31, 2000, the Company
drilled fourteen wells (3.30 net wells) (eleven natural gas wells, three wells
capable of producing both oil and natural gas) completed seven natural gas
wells and extended its gathering system by 5000 feet. By comparison, for the
same period of 1999, the Company drilled four natural gas wells (1.95 net
wells). Drilling operations for the first three months of 2000 were primarily
related to a joint venture on the Company's farmout acreage acquired from
Equitable Resources Energy Corporation.

         The Company funds its operations through a combination of cash flow
from operations, capital raised through drilling partnerships and the sale of
stock. Operational cash flow is generated by sales of natural gas and oil from
interests the Company owns in wells, well operations of partnership wells, and
well drilling and completions for Company sponsored partnerships.

         The Company continues to review additional opportunities for
acquisitions of oil and gas properties. Previous acquisitions have been
completed using Company stock to pay for the acquisitions. Generally, interests
in wells purchased include a majority interest in the wells and the right to
operate wells.

         The Company acquired wells in two acquisitions in the last quarter of
1999. One transaction was with Environmental Energy, Inc., and its affiliated
limited partnerships, which closed on October 21, 1999 and allowed the Company
to acquire interests in 41 oil and gas wells located in Kentucky, Louisiana and
Tennessee. On October 13, 1999


                                        2
<PAGE>   3

the agreed to purchase 50% interest in 24 natural gas wells located in Knox
County, Kentucky together with gathering systems, easements and operating rights
for $425,000 payable in 191,519 shares of restricted common stock valued at
$2.2191 per share. Because of the ownership structure of the well interests the
transaction was designed to be a three part closing. As of March 31, 2000 a
total of 158,399 shares of stock had been issued in connection with the
acquisition. Additional interests may be acquired in a subsequent closing for
which the company is prepared to issue an additional 33,120 shares of stock.

         The Company has primarily concentrated in drilling wells on prospects
it generates in the Appalachian Basin. Historically, a major portion of the
Company's revenues have been from its activities as "turnkey driller" and
operator of various drilling programs in the Appalachian Basin. During the first
three months of 2000, approximately 94% of the Company's revenues were derived
from joint venture drilling.

         The Company plans to drill 16 wells during the last three quarters of
2000 and earn interests ranging from 15% to 50% of each well it drills.

         Sentra Corporation, the Company's natural gas utility subsidiary,
completed its first full quarter of operations with sales of $27,602. Sentra
has installed approximately 73,000 feet of transmission line and 17,000 feet of
distribution line. As of May 12, 2000, Sentra has 56 customers, 15 of which are
commercial accounts. In addition, Sentra has installed 54 risers that are
awaiting the setting of meters and the commencement of service, and has an
additional 93 applications from customers requesting service. Sentra expects
high demand for natural gas service in its service areas because of ease of
usage, economy and reliability. Further, demand is expected to increase
because of continued growth and acceptance of natural gas by the chicken
industry that is a major commercial segment in the economy of Sentra's service
areas.

         Working capital for the period ending March 31, 2000 was a negative
$2,565,509 compared to the same period in 1999, when working capital was a
negative $4,019,060.

         During the period ending March 31, 2000 and compared to that same
period in 1999, the changes in the composition of the Company's current assets
were: cash balances increased $416,303 from $298,353 to $714,656 accounts
receivable balances decreased $57,975 from $336,116 to $278,141; and inventories
decreased $396,631 from $396,631 to $0. The inventory decrease was due to the
divestiture of Red River Hardwoods, Inc. during 1999. Other current assets such
as prepaids and notes receivable decreased $16,619 from $19,770 to $3,151.
Overall, current assets decreased by $54,922 to $995,948.

         Current liabilities for the period ended March 31, 2000 were $3,561,457
compared to $5,069,930 for the period ended March 31, 1999. The majority of the
decrease was due to the divestiture of Red River Hardwoods, Inc. during 1999.

         While the Company believes its cash flow resulting in operating
revenues will contribute significantly to its short term financial commitments
and operating costs, it has continued to refine its long term strategy in 2000
to meet the Company's financial obligations. This strategy includes:

         -     INCREASING JOINT VENTURE DRILLING. Higher oil and gas prices have
               sparked an increased interest in partnership drilling. On
               April 30, 2000 the Company signed a partnership agreement to
               drill up to 8 wells in the second quarter ending June 30. Because
               of renewed interest in drilling the Company believes that it
               will be able to meet its goal of 30 wells to be drilled in 2000.

         -     ACQUISITION OF REVENUE PRODUCING PROPERTIES. The Company
               continues to review existing oil and gas properties for sale in
               its areas of interest. In addition to reviewing new properties,
               the Company intends to complete the closing of the Ken-Tex
               acquisition in 2000.

         -     INSTALLATION OF ADDITIONAL NATURAL GAS GATHERING SYSTEM. The
               Company plans to expand its natural gas gathering system in 2000
               by more than 50,000 feet. The Company owns wells that are shut in
               or experiencing production constraints due to pipeline
               restrictions and a 40,000 foot extension to the Kay Jay Field is
               planned. This will allow the Company to increase its flow of gas
               from wells it owns and operates, plus transport gas from wells
               drilled in the future. On May 5, 2000, 14,000 feet of four inch
               pipeline was completed and gas flow commenced from the Company's
               Hatfield Gap Field that allows new gas production to be marketed.

         -     GOLD AND SILVER PROPERTIES. It is the Company's objective to
               realize the value of its gold and silver properties by 1)
               obtaining a joint venture partner to provide funds for additional
               exploration on its prospects or 2) divesting its gold and silver
               properties. To help achieve its goal in March 2000, the Company
               commissioned an engineering review and an appraisal by qualified
               independent third parties of its gold and silver properties.


                                        3
<PAGE>   4


RESULTS OF OPERATIONS

         For the three month period ending March 31, 2000, the Company's gross
revenues increased $1,619,466 to $2,979,595 from $1,360,129 for the same period
in 1999. The majority of the increase was attributable to increased turnkey
drilling operations. The Company experienced net income from continuous
operations of $720,442 in this period compared to a net loss of $252,166 in the
same period of 1999.

         The Company's gross revenues were derived from drilling contract
revenues of $2,809,362 (94%), from natural gas and oil operations and production
revenues of $142,631 (5%) and natural gas distribution of $27,602 (1%).

         The increase in gross revenues of $1,619,466 was primarily attributable
to the increased in drilling activity during the period. Contract revenues from
drilling activities increased by $2,482,528 from $326,834 in the first three
months of 1999 to $2,809,362 in the first three months of 2000.

         During the first three months of 2000, total direct costs increased by
$680,147 to $1,887,804 compared to $1,207,157 in the first three months of 1999.
These direct costs included drilling and related costs for 14 natural gas wells.

                                     PART II
                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

         None.

ITEM 5.  OTHER INFORMATION.

         Not Applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)   List of Documents Filed with this Report.
               -----------------------------------------
                                                                          PAGE
                                                                          ----
         (1)   Balance Sheet for the Period Ended March 31, 2000...........i

               Income Statement for the Period Ended March 31, 2000...ii-iii

               Segmented Information......................................iv


         All schedules have been omitted since the information required to be
submitted has been included in the financial statements or notes or has been
omitted as not applicable or not required.

         (2)   Exhibits--

               The exhibits indicated by an asterisk (*) are incorporated by
               reference.

         EXHIBIT
         NUMBER    DESCRIPTION OF EXHIBIT
         ------    ----------------------

         3(a)*  Memorandum and Articles for Catalina Energy & Resources Ltd., a
                British Columbia corporation, dated January 31, 1979, filed as
                an exhibit to Form 10 Registration Statement filed May 25, 1984.
                File No. 0-12185.


                                        4
<PAGE>   5

         3(b)*  Certificate for Catalina Energy & Resources Ltd., a British
                Columbia corporation, dated November 27, 1981, changing the name
                of Catalina Energy & Resources Ltd. to Alaska Apollo Gold Mines
                Ltd., and further changing the authorized capital of the Company
                from 5,000,000 shares of common stock, without par value per
                share, to 20,000,000 shares of common stock, without par value
                per share, filed as an exhibit to Form 10 Registration Statement
                filed May 25, 1984. File No. 0-12185.

         3(c)*  Certificate of Change of Name for Alaska Apollo Gold Mines Ltd.,
                a British Columbia corporation, dated October 14, 1992, changing
                the name of Alaska Apollo Gold Mines Ltd. to Alaska Apollo
                Resources Inc., and further changing the authorized capital of
                the Company from 20,000,000 shares of common stock, without par
                value per share, to 6,000,000 shares of common stock, without
                par value per share.

         3(d)*  Altered Memorandum of Alaska Apollo Resources Inc., a British
                Columbia corporation, dated September 9, 1994, changing the
                authorized capital of the Company from 6,000,000 shares of
                common stock, without par value per share, to 20,000,000 shares
                of common stock, without par value per share.

         3(e)*  Certificate of Change of Name for Alaska Apollo Resources Inc.,
                a British Columbia corporation, dated June 24, 1998, changing
                the name of Alaska Apollo Resources Inc. to Daugherty Resources,
                Inc. and further changing the authorized capital of the
                Registrant from 20,000,000 shares of common stock, without par
                value per share, to 50,000,000 shares of common stock, without
                par value, and authorizing the creation of 6,000,000 shares of
                preferred stock, without par value per share. (File No.0-12185).

         3(f)*  Altered Memorandum of Daugherty Resources, Inc., a British
                Columbia corporation, dated June 24, 1998, changing the
                authorized common stock of the Registrant from 50,000,000 shares
                of common stock, without par value per share, to 10,000,000
                shares of common stock, without par value. (File No.0-12185).

         3(g)*  Altered Memorandum of Daugherty Resources, Inc., a British
                Columbia corporation, dated June 25, 1998, changing the
                authorized preferred stock of the Registrant from 6,000,000
                shares of preferred stock, without par value per share, to
                1,200,000 shares of preferred stock, without par value. Filed as
                an exhibit to Form 8-K, by the Company for reporting an event on
                June 29, 1998. (File No.0-12185).

         3(h)*  Special Resolution of Daugherty Resources, Inc., a British
                Columbia corporation, dated June 30, 1999, changing the
                authorized capital of the Registration from 10,000,000 shares of
                common stock, without par value per share, to 100,000,000 shares
                of common stock, without par value per share, and from 1,200,000
                shares of preferred stock, without par value per share, to
                5,000,000 shares of preferred stock, without par value per
                share. Altered Memorandum of Daugherty Resources, Inc., dated
                June 30, 1999, changing the authorized capital of the Company to
                105,000,000 shares divided into 5,000,000 shares of preferred
                stock, without par value and 100,000,000 common shares without
                par value. Special Resolution of Daugherty Resources, Inc., a
                British Columbia corporation, dated June 30, 1999, altering
                Article 23.1(b) of the Company Articles by substituting a new
                Article 23.1(b) that sets forth the conditions and terms upon
                which the preferred shares can be converted to common stock.
                Filed as an exhibit to Form 8-K, for the Company for reporting
                an event on October 25, 1999. (File No.0-12185)


         4*     See Exhibit No. 3(a), (b). (c), (d), (e), (f), (g) and (h)

         10(a)* Alaska Apollo Resources Inc. 1997 Stock Option Plan, filed as
                Exhibit 10(a) to Form 10-K for the Company for the fiscal year
                ended December 31, 1996. (File No. 0-12185).


                                        5
<PAGE>   6

         10(b)* Incentive Stock Option Agreement by and between Alaska Apollo
                Resources Inc. and William S. Daugherty dated March 7, 1997,
                filed as Exhibit 10(b) to Form 10-K for the Company for the
                fiscal year ended December 31, 1996. (File No. 0-12185).

         10(c)* Agreement of Purchase and Sale by and between Environmental
                Energy Partners I, Ltd., Environmental Energy Partners II, Ltd,
                Environmental Operating Partners, Ltd., Environmental Holding,
                LLC, Environmental Processing Partners, Ltd., Environmental
                Energy, Inc., and Environmental Operating, Inc., as Sellers and
                Daugherty Petroleum, Inc., as Buyer, and Daugherty Resources,
                Inc. as Accommodating Party, dated as of January 26, 1999, filed
                as an Exhibit to Form 8-K by the Company for reporting an event
                on May 25, 1999 (File No. 0-12185).

         10(d)* Agreement for the Purchase and Sale by and between H&S Lumber,
                Inc., Buyer, and Daugherty Petroleum, Inc., Seller, for the sale
                of Red River Hardwoods, Inc., an 80% subsidiary of Daugherty
                Petroleum, Inc., which was effective June 30, 1999, and closed
                December 1, 1999, filed as Exhibit 10.1 to Form 8-K by the
                Company for reporting an event on December 9, 1999 (File No.
                0-12185).

         11     Computation of Per Share Earnings.

         24     Powers of Attorney.

         27     Financial Data Schedule.

         (b)*   Reports on Form 8-K.
                -------------------
                None

         (c)    Financial Statement Schedules.
                -----------------------------

                No schedules are required, as all information required has
                been presented in the audited financial statements.



                                        6
<PAGE>   7



                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf of the
undersigned hereunto duly authorized.

                                         DAUGHERTY RESOURCES, INC.


                                         By:  /s/ William S. Daugherty
                                             --------------------------
                                             William S. Daugherty, President


Dated:

         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.






     SIGNATURE                           TITLE                         DATE
     ---------                           -----                         ----


/s/ William S. Daugherty      Chairman of the Board, President,    May 15, 2000
------------------------      Director of the Registrant
WILLIAM S. DAUGHERTY



James K. Klyman*               Director of the Registrant          May 15, 2000
----------------
JAMES K. KLYMAN



Charles L. Cotterell*         Director of the Registrant           May 15, 2000
---------------------
CHARLES L. COTTERELL







*By /s/William S. Daugherty
   ------------------------
        William S. Daugherty,
        Attorney-in-Fact










                                        7
<PAGE>   8
DAUGHERTY RESOURCES. INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(United States Dollars)
Unaudited


<TABLE>
<CAPTION>
                                                       3/31/99          3/31/00
                                                    ------------     ------------
<S>                                                 <C>              <C>
                                   ASSETS
                                   ------
CURRENT ASSETS
--------------
  Cash                                              $    298,353     $    714,656
  Accounts receivable                                    336,116          278,141
  Inventory                                              396,631                -
  Other current assets                                    19,770            3,151
                                                    ------------     ------------

              TOTAL CURRENT ASSETS                     1,050,870          995,948

OIL & GAS PROPERTIES (NET)                             4,637,303        6,631,337
--------------------------

MINING PROPERTY (NET)                                 11,232,229        4,450,000
---------------------

PROPERTY & EQUIPMENT (NET)                             1,737,687          113,278
-------------------------

OTHER ASSETS
------------
  Related party loans                                     96,324          389,923
  Bonds & deposits                                        54,224           41,000
  Other assets                                           266,016           98,586
  Goodwill, net of amortization of $1,163,215          1,027,357          626,349
                                                    ------------     ------------
                                                       1,443,921        1,155,858
                                                    ------------     ------------

              TOTAL ASSETS                          $ 20,102,010     $ 13,346,421
                                                    ============     ============


                LIABILITIES & STOCKHOLDER'S EQUITY
                ----------------------------------
CURRENT LIABILITIES
  Short-term loans & notes                          $    879,177     $  1,152,588
  Current portion of LT debt                           1,151,283          190,011
  Accounts payable                                     1,464,996          431,316
  Accrued liabilities                                    750,553        1,156,007
  Drilling prepayments                                   823,921          631,535
                                                    ------------     ------------

              TOTAL CURRENT LIABILITIES                5,069,930        3,561,457

LONG-TERM LIABILITIES                                  2,553,897        1,804,454
---------------------

PAYABLE TO RELATED PARTIES                                25,517           43,745
--------------------------                          ------------     ------------
                                                       7,649,344        5,409,656

MINORITY INTEREST                                              -                -
-----------------

STOCKHOLDER'S EQUITY
--------------------
  Common stock                                        21,209,821       21,745,730
  Preferred stock                                                         650,000
  Common stock subscribed                                      -          546,502
  Additional paid in capital                                   -                -
  Retained earnings (deficit)                         (8,504,989)     (15,725,909)
  Current income (loss)                                 (252,166)         720,442
                                                    ------------     ------------
                                                      12,452,666        7,936,765
                                                    ------------     ------------

              TOTAL LIABILITIES &
                STOCKHOLDER'S EQUITY                $ 20,102,010     $ 13,346,421
                                                    ============     ============


Unaudited-Internally prepared by Company management
</TABLE>


                                       i

<PAGE>   9

DAUGHERTY RESOURCES, INC.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(United States Dollars)
Unaudited


<TABLE>
<CAPTION>
                                             For the three month period ended

                                                           3/31/99                         3/31/00
                                                ------------------------         ---------------------------

<S>                                             <C>              <C>                <C>              <C>
GROSS REVENUE                                   $ 1,360,129      100.00%            $ 2,979,595      100.00%
-------------

DIRECT EXPENSES                                   1,207,157       88.75%              1,887,304       63.34%
---------------                                 -----------      -------         --------------       ------

              GROSS PROFIT                          152,972       11.25%              1,092,291       36.66%

GENERAL & ADMINISTRATIVE EXPENSES
---------------------------------
  Salaries & wages                                   93,229        6.85%                 80,786        2.71%
  Accounting & audit                                 23,826        1.75%                 12,453        0.42%
  Advertising & promotion                               536        0.04%                      -        0.00%
  Amortization                                       52,616        3.87%                 72,260        2.43%
  Bad debts                                           6,157        0.45%                      -        0.00%
  Depreciation                                       11,514        0.85%                 12,772        0.43%
  General consulting                                 31,176        2.29%                152,618        5.12%
  Insurance                                           7,554        0.56%                  6,761        0.23%
  Legal                                              30,463        2.24%                 33,936        1.14%
  Office & general                                   33,277        2.45%                 26,393        0.89%
  Payroll & property tax                             13,933        1.02%                  6,363        0.21%
  Rent                                               14,724        1.08%                 13,720        0.46%
  Repairs & maintenance                               1,316        0.10%                  3,453        0.12%
  Shareholder & investor information                  1,929        0.14%                  5,675        0.19%
  Travel & entertainment                             18,024        1.33%                 17,295        0.58%
                                                -----------      -------         --------------       ------

              TOTAL G & A EXPENSES                  340,274       25.02%                444,485       14.92%

OTHER INCOME (EXPENSE)
----------------------
  Interest & dividend income                          4,177        0.31%                 19,524        0.66%
  Miscellaneous                                      22,295        1.64%                122,577        4.11%
  Gain (loss) on sale of equipment                        -        0.00%                      -        0.00%
  Interest expense                                  (91,336)      -6.72%                (69,465)      -2.33%
                                                -----------      -------         --------------       ------

INCOME BEFORE INCOME TAX & OTHER                   (252,166)     -18.54%                720,442       24.18%
--------------------------------
  Income tax expense (benefit)                            -        0.00%                      -        0.00%

DISCONTINUED OPERATIONS
-----------------------
  Income (loss) from discontinued operations              -        0.00%                      -        0.00%
   Gain (loss) on disposal                                -        0.00%                      -        0.00%
                                                -----------      -------            -----------       ------

              NET INCOME (LOSS)                 $  (252,166)     -18.54%            $   720,442       24.18%
                                                ===========      =======         ==============       ======


DEFICIT, beginning of period                     (8,504,989)                     $  (15,725,909)
DEFICIT, end of period                           (8,757,155)                     $  (15,005,467)


Shares outstanding                                2,183,783                           2,504,099

EARNINGS PER SHARE                                   ($0.12)                              $0.29
</TABLE>



Unaudited-Internally prepared by Company management


                                       ii


<PAGE>   10

DAUGHERTY RESOURCES, INC.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States Dollars)
Unaudited

<TABLE>
<CAPTION>
                                                                     For the three month period ended

                                                                         3/31/99         3/31/00
                                                                       -----------     -----------

<S>                                                                    <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
  Net income (loss)                                                    $  (252,166)    $   720,442
  Adjustments to reconcile net income (loss) to net cash
  cash provided by operating activities:
    Depreciation, depletion, & amortization                                150,191         137,512
    Gain on sale of subsidiary                                                   -               -

    Changes in current assets & liabilities
      (Increase) decrease in:
         Accounts receivable                                                75,380         (60,273)
         Inventory                                                          35,837               -
         Other current assets                                               31,507          (3,151)
      Increase (decrease) in:
         Short-term loans & notes                                          (54,340)         (3,849)
         Accounts payable                                                  303,574        (258,841)
         Accrued liabilities                                              (100,577)        504,852
         Drilling prepayments                                              (98,589)     (1,904,929)
                                                                       -----------     -----------
              Net cash provided by (used in) operating activities           90,817        (868,237)


CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
  Change in oil & gas properties                                           (34,200)       (825,512)
  Change in mining properties                                                    -               -
  Change in property & equipment                                            19,959         (15,989)
  Change in other assets                                                  (122,865)         45,363
                                                                       -----------     -----------
              Net cash provided by (used in) investing activities         (137,106)       (796,138)


CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
  Issuance of common stock                                                       -         211,504
  Change in long-term liabilities                                         (198,833)         54,380
  Change in payable to related party                                        14,809        (163,960)
                                                                       -----------     -----------
              Net cash provided by (used in) financing activities         (184,024)        101,924
                                                                       -----------     -----------

NET INCREASE (DECREASE) IN CASH                                           (230,313)     (1,562,451)
-------------------------------

CASH AT BEGINNING OF PERIOD                                                528,666       2,277,107
---------------------------                                            -----------     -----------
CASH AT END OF PERIOD                                                  $   298,353     $   714,656
---------------------                                                  ===========     ===========
</TABLE>




Unaudited-Internally prepared by Company management


                                      iii

<PAGE>   11

DAUGHERTY RESOURCES, INC.
SEGMENTED INFORMATION
For the thre month period ended March 31, 2000
(United States Dollars)
Unaudited

<TABLE>
<CAPTION>
                                                                WOOD
                                 OIL & GAS           MINING   PRODUCTS*       CORPORATE             TOTAL
                                 ---------           ------   ---------       ---------             -----

<S>                             <C>                <C>         <C>             <C>               <C>
GROSS EXTERNAL REVENUE          $ 2,979,595                -        -                  -         $ 2,979,595

INTERSEGMENT REVENUES                     -                -        -                  -                   -

INTEREST REVENUE                     16,667                -        -              2,857              19,524

INTEREST EXPENSE                     48,430                -        -             21,035              69,465

DEPRECIATION                          1,772                -        -             11,000              12,772

DEPLETION                            80,000                -        -                  -              80,000

AMORTIZATION OF GOODWILL                  -                -        -             44,739              44,739

SEGMENT PROFIT (LOSS)           $   963,519                -        -           (243,077)        $   720,442
                                ===========        =========   ======        ===========         ===========

SEGMENT ASSETS                  $ 6,631,337        4,450,000        -          2,265,084         $13,346,421
                                ===========        =========   ======        ===========         ===========

EXPENDITURES FOR SEGMENT
      ASSETS                    $   825,512                -        -             15,989         $   841,501
                                ===========        =========   ======        ===========         ===========
</TABLE>
*Discontinued operation

Unaudited-Internally prepared by Company management





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