Gateway Energy Corp. has acquired the Hickory Creek Gathering System from Hickory Creek Gathering LP and Range Texas Production LLC for $3.9 million in cash, adjusted to reflect a transaction effective date of Nov. 1, 2009. The system is in Denton County, TX, in the core of the Barnett Shale and currently services two significant producers, Gateway said. There are 15 producing wells connected to the system with throughput of approximately 11,000 MMBtu/d at a fixed gathering fee. The producers have also identified up to 18 additional drilling locations within dedicated leases for future development. Based on projected 2010 production, Gateway expects the system to increase its revenue in 2010 by approximately $772,000, assuming no additional wells are placed on the system during 2010. “We plan to use the Hickory Creek Gathering System as the base from which we can pursue organic growth opportunities with our current and neighboring producers, as well as to pursue additional acquisition opportunities in the Barnett Shale,” said Gateway CEO Robert Panico. Gateway 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.

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.