Bidder Communications Inc. (BIDC) said on Thursday that as part of its diversification strategy the company has acquired 100% ownership of Southern States Gas Gathering LLC of Louisiana. The acquisition gives BIDC entry into the southern energy resource market.

Formed in 1994, the gathering system is located in northwest Louisiana within the Caddo Pine Island field, which has had over 10,000 wells drilled to develop oil and gas reserves. BIDC said the system has a replacement cost of $2.3 million. The system has been inactive since December 1999.

Currently casing head gas is being vented into the atmosphere from wells throughout this field and it is estimated that the strategic positioning of the gathering system will allow the connection of 3,000 of these wells without the extension of the 65 miles of trunklines already in place. BIDC said that this enables the ultimate gathering of 5 MMcf/d of natural gas that on an individual producer basis is not economical, but collectively creates attractive revenue for the gathering system and the producers in the field.

In conjunction with the acquisition, BIDC reported that Willard G. McAndrew III and Roger N. Wurtele have been appointed to the board of directors, and McAndrew will act as chairman until the next annual meeting of shareholders. In addition to the gathering company, GlobalSat data, an analytical process to select locations for drilling oil/gas wells, was included with the purchase.

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