There are currently 15 producing wells connected to the system with throughput of approximately 11,000 MMBtu per day at a fixed gathering fee for each MMBtu transported.
The producers have also identified up to 18 additional drilling locations within the dedicated leases for future development. The purchase price has been paid by the company utilizing a combination of available cash and the company’s existing line of credit.
Based on projected 2010 production, the company expects the Hickory Creek Gathering System to increase the company’s revenue in 2010 by approximately $772,000, assuming no additional wells are placed on the system during 2010.
Robert Panico, president and CEO of Gateway Energy, said: “This is an exciting opportunity for Gateway. This acquisition expands our geographical area of operations and it gives us a foothold in a very important producing basin, the Barnett Shale.
“We plan to use the Hickory Creek Gathering System as the base from which we can pursue organic growth opportunities with our current and neighboring producers, as well as to pursue additional acquisition opportunities in the Barnett Shale.”
