<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 SEPTEMBER 30, 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: (859) 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 SEPTEMBER 30, 2000, WAS 3,212,387.

         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 i through vi
of this Report, and is incorporated herein by reference.

         The accompanying unaudited consolidated financial statements have been
internally prepared by the management of Daugherty Resources, Inc. ("Daugherty
Resources") and in the opinion of management, represent a fair presentation of
the financial position of Daugherty Resources for the interim period. These
interim unaudited consolidated financial statements should be read in
conjunction with the Daugherty Resources' audited consolidated financial
statements and  notes thereto filed on Form 10-KSB for the year ended
December 31, 1999, previously filed with the Securities and Exchange Commission.

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

         The following is a discussion of the financial condition and results of
operations of Daugherty Resources. This discussion should be read in conjunction
with the Financial Statements of Daugherty Resources 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 Daugherty Resources 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 Daugherty
Resources will be achieved. Moreover, such forward-looking statements are
subject to certain risks and uncertainties as more particularly set forth below,
that could cause actual results to differ materially from those projected.
Readers are cautioned not to place undue reliance on these forward-looking
statements.

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

         Since acquiring Daugherty Petroleum, Daugherty Resources has increased
its gas and oil 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 ventures and drilling programs, where Daugherty
Petroleum, is the primary decision maker. Daugherty Resources continues to
aggressively seek acquisitions and drilling programs; however, there can be no
assurance that additional acquisitions or drilling will occur in 2000.

LIQUIDITY

         Daugherty Resources primarily 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 owned in wells, operations of partnership
wells, and drilling and completions for Daugherty Resources sponsored
partnerships and joint ventures.

         Daugherty Resources continues to review additional opportunities for
acquisitions of oil and gas properties. Previous acquisitions have been
completed using the stock of Daugherty Resources to pay for the acquisitions. If
the value of Daugherty Resources stock should decrease future acquisitions using
stock may not be possible.





                                       2
<PAGE>   3

         Working capital for the period ending September 30, 2000 was a negative
$3,017,802 compared to the same period in 1999, when working capital was a
negative $1,826,603. During the period ending September 30, 2000 and compared to
that same period in 1999, current assets decreased by $662,010 to $655,323. The
changes in the composition of Daugherty Resources' current assets were: cash
balances decreased $185,923 from $646,535 to $460,616; accounts receivable
balances increased $48,187 from $140,798 to $188,985; other current assets such
as prepaids and notes receivable decreased $524,274 from $530,000 to $5,726. The
majority of the decrease was due to the divestiture of Red River Hardwoods, Inc.
during 1999.

         Current liabilities for the period ended September 30, 2000 were
$3,673,125 compared to $3,143,936 for the period ended September 30, 1999. The
increase was primarily due to an increase in accounts payable and accrued
expenses of $401,627 from $1,293,855 to $1,695,482 at September 30, 2000.

         On August 26, 1998, Daugherty Petroleum obtained a $1,000,000 line of
credit from Compass Bank, Houston, Texas, secured by a first mortgage on
producing gas properties. Daugherty Petroleum makes interest only monthly
payments at a variable interest rate as published in the Wall Street Journal's
Money Rate Table plus one percent. Since the inception of the line of credit, it
has been periodically renewed. The maturity date of the current extension is
January 1, 2001. Daugherty Petroleum anticipates that the line of credit will be
renewed when it matures or that the line of credit will be replaced with a new
source of financing that will allow Daugherty Petroleum to pay off Compass Bank
and possibly increase the line of credit. There can be no assurance that
Daugherty Petroleum will obtain an extension from Compass Bank on favorable
terms or secure new financing from another source prior to January 1, 2001.

         To obtain additional working capital, on September 14, 2000, Daugherty
Resources sold 159,194 shares of common stock for $ 2.31 per share pursuant to
three private placement agreements. While management believes that it can sell
additional shares of stock to provide additional liquidity, there can be no
assurance of the price that Daugherty Resources will receive for future sales.

         Daugherty Resources has incurred losses over the past several years
both from operations and from write-down of its gold properties. While Daugherty
Resources believes its cash flow resulting from operating revenues will
contribute significantly to its short-term financial commitments, it has and
continues to take steps to reduce losses and increase cash flow from operations.
The following actions have been taken or are being pursued:

         -        INCREASING JOINT VENTURE DRILLING. Daugherty Petroleum drilled
                  five (5) wells during the third quarter that increased its
                  drilling revenue and will increase future revenue from
                  production. Up to nine (9) wells remain to be drilled on a
                  partnership agreement and drilling and operating agreement
                  dated August 3, 2000. These wells, to the extent funded by the
                  partnership, must be drilled and completed by March 31, 2001.
                  Daugherty Petroleum is sponsoring a limited partnership to
                  drill up to 10 well and is co-sponsor of an additional
                  partnership to drill up to 15 wells. Furthermore, Daugherty
                  Petroleum is in negotiations with several other parties
                  regarding partnerships or joint ventures to drill additional
                  wells. All of these wells if funded would be required to be
                  drilled and completed by March 31, 2001. While there can be no
                  assurance as to the number of wells that will be contracted
                  for, management is confident that at least 20 wells will be
                  drilled and completed and that the contract price for those
                  wells will result in increased drilling revenue during the
                  last quarter of 2000 and the first quarter of 2001 and in
                  increased revenue from natural gas and oil operations and
                  production revenue commencing in the first quarter of 2001.

         -        ACQUISITION OF REVENUE PRODUCING PROPERTIES. Daugherty
                  Resources continues to review producing oil and gas properties
                  for acquisition. In addition to reviewing new properties,
                  Daugherty Resources intends to finalize the Ken-Tex
                  acquisition in late 2000 or early 2001.

         -        INSTALLATION OF ADDITIONAL NATURAL GAS GATHERING SYSTEM.
                  Daugherty Petroleum's plan to expand its natural gas gathering
                  system by more than 50,000 feet during 2000 has been exceeded
                  with the addition of more than 84,000 feet in four-inch line.
                  On May 5, 2000, 14,000 feet of four-inch pipeline was
                  completed and gas flow commenced from wells located in
                  Daugherty Petroleum's Fonde Oil and Gas Field. On November 6,
                  2000, Daugherty Petroleum completed the construction of a
                  70,000 foot addition to its gathering line system consisting
                  of four-inch lines that run from its Kay Jay Field to its
                  Bryant Store compression station. In addition, Daugherty
                  Petroleum, on November 10, 2000



                                       3
<PAGE>   4

                  upgraded compression at its Bryant Store station. These
                  changes will eliminate existing production constraints in the
                  Kay Jay Field. Management anticipates that the changes will
                  also permit Daugherty Petroleum to transport gas from wells it
                  expects to drill in the future. The increased sales resulting
                  from additional gas being moved to market will result in
                  increased cash flow.

         -        INCREASE IN NATURAL GAS PRICES. Daugherty Petroleum entered
                  into a natural gas sales contract effective November 1, 2000
                  for 1,000 decatherms (1000 British Thermal Units) per day with
                  Nami Resources Company, LLC of London, Kentucky for gas
                  deliveries through October 31, 2001. This contract will net
                  $5.13 per mcf (1000 cubic feet) and represents a more than
                  100% increase in the price contained in the previous agreement
                  with Nami Resources that expired October 31, 2000. The balance
                  of gas produced by Daugherty Petroleum is being sold pursuant
                  to agreements containing pricing provisions tied to monthly
                  indexes. Management anticipates that sales of natural gas
                  under these agreements will result in increased cash flow;
                  however, there can be no assurances that current natural gas
                  pricing will continue at the present levels.

         -        GOLD AND SILVER PROPERTIES. It is Daugherty Resources'
                  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. An engineering
                  review and an appraisal by qualified independent third parties
                  of its gold and silver properties were completed early in the
                  second quarter of 2000.

         Should Daugherty Resources be unable to achieve its projected cash flow
from operations, additional financing or sale of oil and gas properties could be
necessary. Daugherty Resources believes that it could sell oil and gas
properties or obtain financing, although, there can be no assurance that such
financing would be available on a timely basis or acceptable terms.

RESULTS OF OPERATIONS

         For the nine-month period ending September 30, 2000, Daugherty
Resources' gross revenues increased $4,485,823 to $5,458,972 from $973,149 for
the same period in 1999. The majority of the increase was attributable to
increased drilling operations, which increased by $4,252,822 from $618,495 for
the first nine months of 1999 to $4,871,317 for the first nine months of 2000.
Daugherty Resources experienced income from continuous operations of $135,761 in
this period compared to a net loss of $747,445 in the same period of 1999.

         Daugherty Resources' gross revenues for the nine-month period ending
September 30, 2000 were derived from drilling revenues of $4,871,317 (89%), from
natural gas and oil production and operating revenues of $548,620 (10%) and
natural gas distribution of $39,035 (1%), while its gross revenues for the
comparable period in 1999 were derived from drilling revenues of $618,495 (64%)
and natural gas and oil production and operating revenues of $354,654 (36%).
There were no revenues from natural gas distribution during the comparable
period in 1999. Revenues from drilling operations for the nine-month period
ending September 30, 2000 were up 688% over the comparable period in 1999, while
revenues from natural gas and oil production and operating revenues increased
55%.

         During the first nine months of 2000, total direct costs increased by
$2,851,101 to $3,592,620 compared to $741,519 in the first nine months of 1999.
These direct costs included drilling and related costs for 23 natural gas wells
and completion of 15 wells.

         For the nine months ending September 30, 2000, Daugherty Petroleum
drilled a total of twenty-three wells (5.942 net wells) (twenty natural gas
wells, three wells capable of producing both oil and natural gas) completed
fifteen natural gas wells and extended its gathering system by 26,560 feet. By
comparison, for the same period of 1999, Daugherty Petroleum drilled six natural
gas wells (2.61 net wells), and completed five. Drilling operations for the
first nine months of 2000 were primarily related to joint ventures on farmout
acreage acquired from Equitable Production Company. The 23 wells that Daugherty
Petroleum has drilled represent approximately 77% of its announced goal of 30
wells for fiscal year 2000. While Daugherty Petroleum's working interest in the
wells that it drills varies from well to well, for the five (5) wells drilled in
the quarter ending September 30, 2000, its average






                                       4
<PAGE>   5

working interest was 33.33%. Daugherty Petroleum expects that it will drill an
additional seven (7) wells during the last quarter of 2000 and maintain working
interests ranging from 25% to 33.33% in each well it drills.

         Of the 23 wells drilled during as of September 30, 2000, 14 were
successful oil and gas wells located on Daugherty Petroleum's newly discovered
Fonde Oil and Gas Field. The wells are on acreage located in Bell County,
Kentucky, to which Daugherty Resources acquired drilling rights in April of 1998
from Equitable Production Company.

         During the second quarter of 2000, Daugherty Petroleum completed the
acquisition of an oil and gas lease from J. M. Huber Corporation covering 12,300
acres, which is adjacent to the Fonde Oil and Gas Field.

         On October 13, 1999 Daugherty Petroleum agreed to purchase from Ken-Tex
Oil & Gas, Inc. 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 originally designed to be a three part closing. As of September
30, 2000 four closing have been conducted and a total of 165,588 shares of stock
had been issued in connection with the acquisition. Additional interests may be
acquired in subsequent closings for which Daugherty Resources is prepared to
issue up to an additional 25,931 shares of stock.

         As of September 30, 2000, Sentra Corporation, Daugherty Resources'
natural gas utility subsidiary, completed its first full nine months of
operations with sales of $39,035. Sentra has installed approximately 83,800 feet
of distribution line and 19,345 feet of service line. As of November 10, 2000,
Sentra had 128 customers, 15 of which are commercial accounts. In addition,
Sentra has installed 20 risers that are awaiting the setting of meters and the
commencement of service, and has an additional 138 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. As of November
10, 2000, Sentra had completed construction of the distribution lines to two
additional chicken broiler houses bringing the total of chicken broiler houses
connected to its system to 18. Each broiler house consumes the rough equivalent
of seven (7) average residences





                                       5
<PAGE>   6




                                     PART II

                                OTHER INFORMATION

ITEM 4.  LEGAL PROCEEDINGS.

         None.

ITEM 5.  OTHER INFORMATION.

         On September 19, 2000, Daugherty Resources filed an S-3 Registration
Statement to register a total of 747,812 shares of common stock issued pursuant
to several private placements and in regard to the December, 1999 divesture of
Red River Hardwoods, a wholly owned subsidiary. On October 27, 2000, the
Securities and Exchange Commission issued comments on the S-3 and various
documents incorporated by reference. Daugherty Resources is currently in the
process of preparing its response and amendment and believes all comments will
be satisfactorily addressed during December 2000.

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 June 30, 2000   ......  i
              Income Statement for the Period Ended June 30, 2000......  ii-iv
              Segmented Information...................................   v

              Computation of Per Share Earnings........................  vi

         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.

            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 Daugherty Resources 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 Daugherty Resources 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 Daugherty Resources from
                    6,000,000




                                      6
<PAGE>   7

                    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 Daugherty
                    Resources 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 Daugherty
                    Resources 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 Daugherty Resources 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 Daugherty Resources 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 Daugherty Resources for
                    the fiscal year ended December 31, 1996. (File No.
                    0-12185).

          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 Daugherty
                    Resources 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 Daugherty Resources 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





                                      7
<PAGE>   8

                    Daugherty Petroleum, Inc., which was effective June 30,
                    1999, and closed December 1, 1999, filed as Exhibit 10.1
                    to Form 8-K by Daugherty Resources 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 unaudited financial statements.





                                      8
<PAGE>   9





                                   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:  November 13, 2000

         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.



<TABLE>
<CAPTION>

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


<S>                          <C>                                <C>
/s/ William S. Daugherty      Chairman of the Board, President,
------------------------        Director of the Registrant        November 13, 2000
William S. Daugherty

/s/ James K. Klyman *           Director of the Registrant        November 13, 2000
-------------------
James K. Klyman

/s/ Charles L. Cotterell *      Director of the Registrant        November 13, 2000
------------------------
Charles L. Cotterell






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



</TABLE>




                                      9
<PAGE>   10

DAUGHERTY RESOURCES, INC.
SUMMARY CONSOLIDATED BALANCE SHEET
(United States Dollars)
Unaudited
<TABLE>
<CAPTION>

                                                                           09/30/00                  09/30/99
                                                                        ------------             ------------
                                      ASSETS
                                     --------
<S>                                                                     <C>                           <C>
CURRENT ASSETS
--------------
      Cash                                                              $    460,612                  646,535
      Accounts receivable                                                    188,985                  140,798
      Inventory                                                                 --                       --
      Other current assets                                                     5,726                  530,000
                                                                        ------------             ------------

               TOTAL CURRENT ASSETS                                          655,323                1,317,333

OIL & GAS PROPERTIES (NET)                                                 7,263,178                4,582,621
--------------------------

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

PROPERTY & EQUIPMENT (NET)                                                   253,662                   93,127
--------------------------

OTHER ASSETS
------------
      Related party loans                                                    367,495                   95,706
      Bonds & deposits                                                        41,000                   41,000
      Other assets                                                            98,586                  317,450
      Goodwill, net of amortization of $1,163,215                            536,871                  715,828
                                                                        ------------             ------------
                                                                           1,043,952                1,169,984
                                                                        ------------             ------------

               TOTAL ASSETS                                             $ 13,666,115               18,395,294
                                                                        ============             ============


                                           LIABILITIES & STOCKHOLDER'S EQUITY
                                           ----------------------------------

CURRENT LIABILITIES
-------------------
      Short-term loans & notes                                          $  1,136,594                1,029,165
      Current portion of LT debt                                             225,958                  138,656
      Accounts payable                                                       544,425                  424,702
      Accrued liabilities                                                  1,151,057                  869,153
      Drilling Prepayments                                                   615,091                  682,260
                                                                        ------------             ------------

               TOTAL CURRENT LIABILITIES                                   3,673,125                3,143,936

LONG-TERM LIABILITIES                                                      1,746,199                2,450,938
---------------------

PAYABLE TO RELATED PARTIES                                                    43,745                   17,571
--------------------------                                              ------------             ------------
                                                                           5,463,069                5,612,445
MINORITY INTEREST
-----------------                                                               --                       --

STOCKHOLDER'S EQUITY
--------------------
      Common stock                                                        22,726,199               21,352,915
      Preferred stock                                                        646,500                     --
      Common stock subscribed                                                420,495                     --
      Additional paid in capital                                                --                       --
      Retained earnings (deficit)                                        (15,725,909)              (8,504,989)
      Current income (loss)                                                  135,761                  (65,077)
                                                                        ------------             ------------
                                                                           8,203,046               12,782,849
                                                                        ------------             ------------

               TOTAL LIABILITIES &
                   STOCKHOLDER'S EQUITY                                 $ 13,666,115             $ 18,395,294
                                                                        ============             ============
</TABLE>

  Unaudited - Internally prepared by Company management



                                      i

<PAGE>   11

DAUGHERTY RESOURCES, INC.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(United States Dollars)
Unaudited
<TABLE>
<CAPTION>
                                                                           For the three month period ended

                                                                   09/30/2000                               09/30/1999
                                                       ------------------------------------     ----------------------------------

<S>                                                             <C>                    <C>            <C>                  <C>
GROSS REVENUE                                                $  1,521,717             100.00%    $    433,538              100.00%
-------------

DIRECT EXPENSES                                                   972,786               63.93%        338,113               77.99%
---------------                                              ------------        -------------   ------------        -------------

      GROSS PROFIT                                                548,931               36.07%         95,425               22.01%

GENERAL & ADMINISTRATIVE EXPENSES
---------------------------------
    Salaries & Wages                                              210,872               13.86%         58,253               13.44%
    Accounting & audit                                             24,470                1.61%          7,000                1.61%
    Advertising & promotion                                         1,467                0.10%           --                  0.00%
    Amortization                                                   44,739                2.94%         44,739               10.32%
    Bad debts                                                        --                  0.00%           --                  0.00%
    Depreciation                                                   14,572                0.96%         10,200                2.35%
    General consulting                                            344,563               22.64%          3,850                0.89%
    Insurance                                                      12,001                0.79%         10,118                2.33%
    Legal                                                          52,329                3.44%         16,765                3.87%
    Office & general                                               52,557                3.45%         51,433               11.86%
    Payroll & property tax                                          8,308                0.55%          4,751                1.10%
    Rent                                                           13,720                0.90%         13,719                3.16%
    Repairs & maintenance                                           4,507                0.30%          3,704                0.85%
    Shareholder & investor information                             48,765                3.20%          6,002                1.38%
    Travel & entertainment                                         18,786                1.23%         22,726                5.24%
                                                             ------------       -------------    ------------       -------------

      TOTAL G & A EXPENSES                                        851,656               55.97%        253,260               58.42%

OTHER INCOME (EXPENSE)
----------------------
    Interest & dividend income                                     11,157                0.73%          8,309                1.92%
    Miscellaneous                                                 (36,838)              -2.42%           --                  0.00%
    Gain (loss) on sale of equipment                                 --                  0.00%           --                  0.00%
    Interest expense                                              (64,324)              -4.23%        (81,060)             -18.70%
                                                             ------------       -------------    ------------       -------------

INCOME BEFORE INCOME TAX & OTHER                                 (392,730)             -25.81%       (230,586)             -53.19%
--------------------------------

    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%        (12,000)              -2.77%
                                                             ------------       -------------    ------------       -------------

NET INCOME (LOSS)                                                (392,730)             -25.81%       (242,586)            -55.95%
                                                             ============       =============    ============       =============

DEFICIT, beginning of period                                 $(15,197,418)                      $  (8,327,480)
DEFICIT, end of period                                       $(15,590,148)                      $  (8,570,066)

Average shares outstanding                                      3,001,053                           2,293,310

EARNINGS PER SHARE                                           $      (0.13)                      $       (0.11)
                                                             ============                       =============
</TABLE>

         Unaudited-Internally prepared by Company management





                                      ii
<PAGE>   12



DAUGHERTY RESOURCES, INC.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(United States Dollars)
Unaudited
<TABLE>
<CAPTION>
                                                                           For the nine month period ended

                                                                   09/30/2000                             09/30/1999
                                                             -------------------------------    -------------------------------

<S>                                                          <C>                      <C>       <C>                      <C>
GROSS REVENUE                                                $  5,458,972             100.00%   $    973,149             100.00%
-------------

DIRECT EXPENSES                                                 3,592,620              65.81%        741,519              76.20%
---------------                                              ------------      -------------    ------------      -------------

      GROSS PROFIT                                              1,866,352              34.19%        231,630              23.80%

GENERAL & ADMINISTRATIVE EXPENSES
---------------------------------
    Salaries & Wages                                              440,527               8.07%        242,341              24.90%
    Accounting & audit                                             69,679               1.28%         51,969               5.34%
    Advertising & promotion                                         1,467               0.03%           --                 0.00%
    Amortization                                                  161,738               2.96%        134,217              13.79%
    Bad debts                                                        --                 0.00%           --                 0.00%
    Depreciation                                                   44,116               0.81%         30,600               3.14%
    General consulting                                            552,123              10.11%         34,380               3.53%
    Insurance                                                      25,500               0.47%         24,706               2.54%
    Legal                                                         103,853               1.90%         96,263               9.89%
    Office & general                                               79,150               1.45%        110,542              11.36%
    Payroll & property tax                                         17,193               0.31%         14,590               1.50%
    Rent                                                           36,160               0.66%         42,163               4.33%
    Repairs & maintenance                                          10,607               0.19%          6,326               0.65%
    Shareholder & investor information                             67,401               1.23%         14,342               1.47%
    Travel & entertainment                                         65,507               1.20%         44,218               4.54%
                                                             ------------      -------------       -----------    -------------

      TOTAL G & A EXPENSES                                      1,675,021              30.68%        846,657              87.00%

OTHER INCOME (EXPENSE)
----------------------
    Interest & dividend income                                     42,020               0.77%         35,586               3.66%
    Miscellaneous                                                  90,057               1.65%           --                 0.00%
    Gain (loss) on sale of equipment                                8,354               0.15%           --                 0.00%
    Interest expense                                             (196,001)             -3.59%       (168,004)            -17.26%
                                                             ------------      -------------    ------------      -------------

INCOME BEFORE INCOME TAX & OTHER                                  135,761               2.49%       (747,445)            -76.81%
--------------------------------

    Income tax expense (benefit)                                     --                 0.00%           --                 0.00%

DISCONTINUED OPERATIONS
-----------------------
    Income (loss) from discontinued operations                       --                 0.00%       (238,904)            -24.55%
    Gain (loss) on disposal                                          --                 0.00%        921,272              94.67%
                                                             ------------      -------------    ------------      -------------

NET INCOME (LOSS)                                            $    135,761               2.49%   $    (65,077)             -6.69%
                                                             ============      =============    ============      =============

DEFICIT, beginning of period                                 $(15,725,909)                     $  (8,504,989)
DEFICIT, end of period                                       $(15,590,148)                     $  (8,570,066)

Shares outstanding                                              2,695,723                          2,222,172

EARNINGS PER SHARE                                           $       0.05                      $       (0.03)
                                                             ============                      =============
</TABLE>

         Unaudited-Internally prepared by Company management





                                     iii
<PAGE>   13




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

                                                                                           For the nine month period ended
                                                                                      09/30/00                      09/30/99
                                                                                ------------------           ------------------

CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
<S>                                                                                      <C>                         <C>
     Net income (loss)                                                                   $135,761                    $(65,077)
     Adjustments to reconcile net income (loss) to net cash provided by
     operating activities
         Depreciation, depletion & amortization                                           445,855                      308,817
         Gain on sale of subsidiary                                                          --                       (963,731)

Changes in current assets & liabilities
     (Increase) decrease in:
         Accounts receivable                                                               28,883                      (1,311)
         Inventory                                                                           --                           --
         Other current assets                                                             (5,726)                    (487,795)
     Increase (decrease) in:
         Short-term loans & notes                                                        (19,843)                      887,336
         Accounts payable                                                               (145,732)                    (145,120)
         Accrued liabilities                                                              499,902                      108,878
         Drilling prepayments                                                         (1,921,373)                    (243,250)
                                                                                ------------------           ------------------
               Net cash provided by (used in) operating activities                      (982,273)                    (601,253)

CASH FLOW FROM INVESTING ACTIVITIES
-----------------------------------
     Change in oil & gas properties                                                   (1,617,353)                    (110,835)
     Change in mining properties                                                             --                           --
     Change in property & equipment                                                     (187,717)                      (1,322)
     Change in other assets                                                                17,842                     (62,044)
                                                                                ------------------           ------------------
               Net cash provided by (used in) investing activities                    (1,787,228)                    (174,201)

CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
     Issuance of common stock                                                           1,062,466                      143,094
     Change in long-term liabilities                                                       32,072                      340,219
     Change in payable to related party                                                 (141,532)                      442,920
                                                                                ------------------           ------------------
               Net cash provided by (used in) financing activities                        953,006                      926,233
                                                                                ------------------           ------------------

NET INCREASE (DECREASE) IN CASH                                                       (1,816,495)                      150,779
-------------------------------

CASH AT BEGINNING OF PERIOD                                                             2,277,107                      495,756
---------------------------                                                     ------------------           ------------------

CASH AT END OF PERIOD                                                                    $460,612                     $646,535
---------------------                                                          ===================           ==================

</TABLE>

Unaudited-Internally prepared by Company management




                                      iv
<PAGE>   14



DAUGHERTY RESOURCES, INC.
SEGMENTED INFORMATION
For the three month period ended June 30, 2000
(United States Dollars)
Unaudited
<TABLE>
<CAPTION>

                                                                             WOOD
                                         OIL & GAS         MINING          PRODUCTS*         CORPORATE            TOTAL
                                       --------------   ------------    ---------------    ---------------    -------------

<S>                                    <C>               <C>              <C>               <C>                <C>
GROSS EXTERNAL REVENUE                 $ 5,458,972             --              --                  --          $ 5,458,972

INTERSEGMENT REVENUES                         --               --              --                  --                 --

INTEREST REVENUE                            26,806             --              --                15,214             42,020

INTEREST EXPENSES                          132,466             --              --                63,535            196,001

DEPRECIATION                                44,116             --              --                  --               44,116

DEPLETION                                  240,000             --              --                  --              240,000

AMORTIZATION OF GOODWILL                      --               --              --               134,218            134,218

SEGMENT PROFIT (LOSS)                  $ 1,052,204             --              --              (916,443)       $   135,761
                                       ===========       ==========       ===========       ===========        ===========

SEGMENT ASSETS                         $ 7,263,178       $4,450,000            --            1,952,9374        $13,666,115
                                       ===========       ==========       ===========       ===========        ===========

EXPENDITURES FOR SEGMENT ASSETS
                                       $ 1,617,353             --              --               187,717        $ 1,805,070
                                       ===========       ==========       ===========       ===========        ===========

</TABLE>
* Discontinued operation

Unaudited-Internally prepared by Company management




                                      v