Gateway Energy Corp. has acquired the Hickory Creek Gathering System from Hickory Creek Gathering LP and Range Texas Production LLC for a cash purchase price of $3.9 million.
The gathering system is located in Denton County, Texas, in the core area of the Barnett Shale and currently services two significant producers. There are currently 15 producing wells connected to the system with throughput of roughly 11,000 MMbtu per day at a fixed gathering fee for each MMbtu transported.
The producers have identified up to 18 additional drilling locations within the dedicated leases for future development. The $3.9 million purchase price was paid with a combination of available cash and the company's existing line of credit.
Based on projected 2010 production, Gateway expects the Hickory Creek Gathering System to increase its revenue in 2010 by approximately $772,000, assuming no additional wells are placed on the system during 2010.
Gateway Energy Corp. owns and operates natural gas gathering, transportation and distribution systems in Texas, Texas state waters and in federal waters of the Gulf of Mexico off the Texas and Louisiana coasts.
