DEWEY, OK / ACCESSWIRE / July 8, 2019 / Entransco, Inc., an independent energy company engaged in the acquisition, exploration, development, and production of legacy oil and natural gas properties containing established production with proven reserves, today announced that it has completed the acquisition of 100% of the outstanding stock of Gateway Resources USA, Inc. Through this acquisition, Entransco significantly increases its asset base and strengthens its position in the oil and gas market, thereby creating added value for its shareholders.
About the Acquisition
Gateway Resources USA, Inc. (“Gateway”) is a licensed oil and gas operator in both Kansas and Oklahoma with annual operating revenue of approximately $3.3 MM. Gateway owns and operates 457 producing oil and natural gas wells, over 100,000 acres of oil and gas leases contained within a 30-mile-wide by 105-mile-long corridor between Tulsa, Oklahoma and Independence, Kansas. Gateway operates approximately 1,200 miles of natural gas gathering pipelines and gas processing systems and markets its produced gas through delivery points into several intrastate and interstate pipelines.
Jim Kitchel, Chief Executive Officer of Entransco, stated, “We are excited and optimistic about adding Gateway to our company’s portfolio. We believe the Gateway acquisition will provide us with multiple high ROI oil and gas development projects that will help propel Entransco’s continued growth going forward”.
Mr. Kitchel further stated, “Both Blaine Hanks and Doug Lamb have done an amazing job of operating the Gateway assets over the past few years in a challenging oil and gas sector economy. It isn’t often that good friends can come together and work to create the potential for substantial growth and value for their company and shareholders. It’s a privilege to now be aligned and in business with men of this caliber.”
Doug Lamb was previously the Operating Manager of Gateway and has been named Interim CEO of Gateway by Entransco’s Board of Directors. Mr. Lamb added, “It makes strategic sense for Entransco to acquire Gateway. Gateway has some great assets just waiting to be fully exploited which include existing oil and gas wells with “behind-the-pipe” undeveloped pay zones, producing oil fields in the primary production phase that need to be re-pressured, and many un-developed drill sites offsetting existing wells. Entransco can convert these opportunities into long-term economic benefit by utilizing its access to capital markets, its existing and capable personnel, and its strong development capabilities to establish itself as a dominant producer of oil and gas in the region.”
About Entransco, Inc.
Entransco, Inc. is an independent energy company engaged in the acquisition, development and production of legacy oil and natural gas properties containing existing proven reserves and located within Oklahoma and Kansas. Entransco and its associated companies, own and operate over 140,000 oil and gas leased acres, containing approximately 500 producing wells and over 1,200 miles of natural gas gathering pipelines, processing and distribution systems. To learn more about the Company, visit: www.entransco.com.
This press release contains forward-looking statements regarding the Company that are intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on the Company's current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", "projects", "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward looking statements in that they reflect estimates based on certain assumptions that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as tornadoes, flooding, and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect the Company's operations or financial results. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Entransco does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC.
SOURCE: Entransco, Inc.