ReoStar Energy Corp. has completed the sale of its 30% interest in the Tri-County Gas Gathering System to Cimmarron Gathering LP, an indirect subsidiary of Copano Energy LLC, for about $15 million cash. "This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area," said ReoStar CEO Mark Zouvas. "The original purpose of building and owning the pipeline was to ensure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating Inc., negotiated a new gas gathering contract that mitigates our original concerns." Fort Worth-based ReoStar has more than 20,000 acres of leasehold in Texas (Barnett and Corsicana) and Arkansas (Fayetteville), and drilling rig interests.
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