NGAS Resources Inc. of Lexington, KY, has closed the sale of its remaining 50% interest in 485 miles of Appalachian gas gathering facilities to Seminole Energy Services (SES) for $22 million. The purchase price was $7.5 million at closing, with the balance of $14.5 million payable by SES in monthly installments through December 2011. The sale completed a mid-July monetization of the initial half interest in the gathering system to a subsidiary of SES for $28 million and was triggered by NGAS’ exercise of put rights that it acquired at that time. “The sale of the remaining interest in this portion of our Appalachian gathering system provides further liquidity to take advantage of our significant development opportunities,” said NGAS CEO William S. Daugherty. “In addition to monetizing this asset and remaining as operator of the gathering system, our firm capacity rights ensure long-term deliverability for our Appalachian gas production.” The gathering system spans parts of southeastern Kentucky, eastern Tennessee and western Virginia, and interconnects with Spectra Energy Partners‘ East Tennessee Natural Gas pipeline network. NGAS retained long-term operating rights and firm capacity rights of 30 MMcf/d in the gathering system.

The Federal Energy Regulatory Commission Wednesday approved Rockies Express Pipeline LLC’s (REX) request to begin service from the Vectren meter station on its REX-East leg and an associated lateral in Warren County, OH. Vectren Energy provides natural gas to customers in west-central Ohio.

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