Benedict, KS-based Quest Resource Corp. announced that it has acquired some natural gas-producing properties, gas gathering pipelines and a fleet of trucks and well service equipment, all of which are located in the southeast Kansas portion of the geological region known as the Cherokee Basin.

The acquisitions, which closed on June 6, include approximately 15,000 acres of gas properties containing an estimated 3.8 Bcf of net gas reserves. The assets were acquired by the Quest subsidiary Quest Oil & Gas Corp. for approximately $2 million in cash from James R. Perkins and E. Wayne Willhite. The gas properties consist of approximately 80 oil and gas leases in Chautauqua, Montgomery and Elk Counties of southeast Kansas.

In a related transaction, another Quest subsidiary, Ponderosa Gas Pipeline Co. Inc., acquired all of the stock of Producers Service Inc., which included its wholly owned subsidiary, J-W Gas Gathering, LLC. The two companies own or control the operational rights to approximately 274 miles of gas gathering pipelines. J-W Gas also owns a fleet of trucks and well servicing equipment, and a shop building in Howard, KS. Ponderosa purchased these entities with 500,000 shares of common stock issued by Quest to entities owned by Perkins and Willhite.

“The acquisition of these two companies and the gas property assets greatly enhances our gas pipeline network and extends our core area for gas production into the western region of the Cherokee Basin,” said Douglas L. Lamb, president of Quest.

Including these acquisitions, Quest’s gas-gathering assets have grown into a network of approximately 600 miles of pipelines. The region in southeast Kansas and northeast Oklahoma where Quest is active in the exploration, production, and transportation of natural gas has now grown to over 1,000 square miles.

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