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.
Lexington
Articles from Lexington
NGAS Unloads Appalachian Gathering Assets to Strengthen Bottom Line
Lexington, KY-based NGAS Resources Inc. has agreed to sell a 50% interest in most of its Appalachian gas gathering facilities to its gas processing partner, Seminole Gas Co., for $28 million. NGAS said proceeds will used to be reduce debt and strengthen its balance sheet.
NGAS Grows Reserves, Production in Core Kentucky Area
It pays to know the territory, particularly if you’re an oil and gas driller in competition with Kentucky coal miners. NGAS Resources Inc., based in Lexington, KY, made its 20 years of experience in eastern Kentucky pay off in 2004, increasing total production by 77%, revenues by 75% and most importantly, completing an acquisition that helped bump up oil and gas assets by 316% to a value of $68.2 million from $16.4 million in 2003.
NGAS Grows Reserves, Production in Core Kentucky Area
It pays to know the territory, particularly if you’re an oil and gas driller in competition with Kentucky coal miners. NGAS Resources Inc., based in Lexington, KY, made its 20 years of experience in eastern Kentucky pay off in 2004, increasing total production by 77%, revenues by 75% and most importantly, completing an acquisition that helped bump up oil and gas assets by 316% to a value of $68.2 million from $16.4 million in 2003.
