Tengasco Opens Distribution System in East Tennessee
Gas began flowing to industrial, residential and municipal
customers on Tengasco Inc.'s East Tennessee pipeline system. The
East Tennessee communities of Sneedville and Rogersville began
receiving service one day after the State of Tennessee Regulatory
Authority issued a permit allowing Tengasco to open the valves of
its 28-mile line. The line, which gathers Appalachian production
and carries it directly to end users, currently is supplying about
10 MMcf/d, but at maximum capacity can provide 48 MMcf/d.
Customers are being served through The Natural Gas Utility
District of Hawkins County. "Now that we are selling natural gas
from our Swan Creek Field in Hancock County, this is the most
exciting event in the history of our three-year-old company," said
Tengasco President Robert M. Carter.
In March the company completed its East Tennessee pipeline. In a
second construction phase, Tengasco plans to build a 13-mile,
8-inch diameter extension, which will expand Tengasco's gas
marketing into the entire eastern region of the United States. The
company has customers in Kentucky and West Virginia. Construction
of the extension should begin Aug. 1 and be completed by November.
Knoxville-based Tengasco also is acquiring Twister Gas Services
and its affiliate Twister Partners of Oklahoma City for $15 million
in cash and stock. The deal should be completed Aug. 1. Twister,
with properties in Oklahoma and Texas, is a privately-held gas
marketing, oil and gas exploration and production company with 1997
gross revenues of $162.2 million and net income of $2.6 million. It
currently owns interests in about 270 gas and oil wells, and 60
miles of gas gathering pipelines. The Twister acquisition will
boost Tengasco's proven gas and oil wells to 490 and increase
proven gas reserves by 24% to 80.7 Bcf.
CEO Michael Ratliff said revenue from gas marketing last year
was $162 million and is expected to be $200 million this year.
Joe Fisher, Houston
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