Gateway Energy Corp. bought offshore pipelines from Gulfshore Midstream Pipelines Ltd. extending from the western and central Gulf of Mexico (GOM) in water depths of 50-650 feet and currently gathering about 60,000 Mcf/d of gas from 56 wells, the company said Thursday.
The pipelines range from six to 16 inches in diameter. Gateway paid $3.1 million cash, 1,550,000 shares of its common stock and assumed about $300,000 in liabilities.
“This acquisition nearly doubles our offshore pipeline network and expands our footprint from Galveston, TX, to New Orleans, LA, making us a major gatherer in the Gulf of Mexico,” said Gateway CEO Robert Panico. “These pipeline systems are located in prolific areas of the Gulf with proven production operated by major producers. There have been numerous leases acquired around these assets, which we anticipate will lead to continued drilling activity. We are also very pleased to add Gulfshore Midstream, a sophisticated player in the energy industry, as one of our largest stockholders.”
Gateway CFO Chris Rasmussen said the assets are expected to be immediately accretive to the company’s earnings per share.
Gateway owns and operates gas gathering, transportation and distribution systems and related facilities in Texas, Texas state waters and in federal waters of the GOM off the Texas and Louisiana coasts.
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