Transmontaigne

Pennaco Energy and TransMontaigne Inc. subsidiary Bear PawEnergy signed a gathering agreement in which Bear Paw will buildand operate a new gathering line in the Powder River Basin ofnortheastern Wyoming and provide services to about 10% of Pennaco’scoal-bed methane program in the basin. The agreement covers thePennaco “South Gillette,” WY contract area, including over 8,600gross leasehold acres and 200 potential well locations. Pennaco hasdrilled and is in the process of testing and completing its first100 wells in the area. The Bear Paw gathering systems will connectPennaco’s gas wells to several major pipelines, including theWestern Gas Resources MIGC Pipeline, currently transporting up to130 MMcf/d of coal-bed gas, the recently announced Fort Union GasPipeline projected to be in service by September of this year, andthe proposed Thunder Creek Pipeline. The remaining 90% of Pennaco’s312,000 net acres in the Powder River will be devoted to FortUnion.