Midstream operator the Aka Energy Group LLC , a subsidiary of the Southern Ute Indian Tribe, Tuesday announced the acquisition of Tulsa-based Lumen Energy Corp., whose assets include 13 gathering systems with over 900 miles of gathering line and two processing plants in the Midcontinent.

Throughput on the Lumen systems, located in the Central Kansas Uplift, Oklahoma, Western Arkansas and the Texas Panhandle, is 83 MMcf/d.

Aka Energy, based in Durango, CO, closed on the acquisition of 100% of the outstanding shares of Lumen on June 1. It has retained all of the existing Lumen management and staff. Purchase price was not disclosed. The transaction was closed with cash reserves.

Including the recent acquisition of Frontier Field Services, Aka Energy now owns and operates six processing or treating plants, 51,000 hp of compression and 1,700 miles of pipe, connected to 2,100 wells with a daily average system throughput of 335 MMcf/d.

“The acquisition of Lumen Energy Corporation continues our aggressive acquisition program,” said Aka President Frank Tsuru. “We are most excited about the organic growth on and around the Lumen assets. There are several wells in various stages of the drilling or completion process on dedicated acreage or in close proximity to Lumen’s systems. With strong product prices, producers continue to add volume to the systems.

“Lumen has historically experienced a 20% annual growth profile,” Tsuru added. “We expect to exceed this volume growth for 2004. The Lumen assets give us a larger presence in Oklahoma and significant footprint in Kansas. Both of these areas are expected to be key acquisition areas for us.”

Lumen COO Joe Griffin said, “We could not be happier than being part of Aka Energy and the Southern Ute Indian Tribe’s Growth Fund. We have always had the vision and assets to grow Lumen Energy exponentially; the Tribe now gives us the level of capital necessary to put our plans into motion. We see growth in Lumen to complement the assets that Aka already owns and operates.”

Aka is a provider of natural gas midstream services with a focus on growth in the Rocky Mountains, Permian Basin and Midcontinent regions of the United States. The company is under the management of the Southern Ute Growth Fund based in Durango. The Southern Ute Indian Tribe, with a bond rating of AAA by Fitch and S&P, has an asset base in excess of $2.0 billion and an extensive energy portfolio.

Red Willow Production Co., a wholly owned subsidiary of the Tribe, owns interests in or operates properties from Central Alberta to the offshore Gulf Coast with a net reserve base of 542.2 Bcfe and a daily net deliverability of 150 MMcfe/d. The Tribe is also a majority interest owner in Red Cedar Gathering Co., a joint venture with Kinder-Morgan Energy Partners, LP. Red Cedar gathers and treats coalbed methane gas in the Ignacio Blanco Field of the San Juan Basin. Daily throughput on the Red Cedar Gathering system exceeds 700 MMcf/d.

Lumen will continue to office in Tulsa and provide energy services to their customers under the name of Lumen Energy Corp. All contact information will remain the same.

Flatrock Energy Advisors Ltd. provided evaluation and advisory services to Aka on the transaction and is based in San Antonio, with offices in Houston and Oklahoma City. KeyBanc Capital Markets also assisted in the transaction.

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