ARCH PETROLEUM ANNOUNCES ACQUISITION OF PIPELINE
ARCH PETROLEUM ANNOUNCES ACQUISITION OF PIPELINE FORT WORTH, Texas, July 14 /PRNewswire/ -- Arch Petroleum Inc.
(NASDAQ: ARCH) announced today that it had closed a transaction to acquire an interest in a six inch pipeline running approximately 100 miles from Wichita Falls, Texas to Saginaw, Texas terminating approximately 10 miles north of Fort Worth, Texas. About 38 miles of the pipeline were reconditioned by the previous owners. Reconditioning and testing of the remainder of the line will commence immediately.
In conjunction with Central States Energy Corporation ("Central States") of Albuquerque, N.M., Arch formed Saginaw Pipeline Company L.C. ("Saginaw") to acquire the pipeline. Arch owns 47.5 percent of Saginaw and provided the financing for the $1,550,000 acquisition. Arch intends to account for Saginaw as a consolidated subsidiary. William Decker, Central States' principal, will serve as president of Saginaw. Decker has over 30 years of business experience including natural gas transportation and processing, oil and gas investments and banking. Larry Kalas, president of Arch, stated, "For many reasons, natural gas is perceived as the fuel of the future. There is an abundant supply of gas available to our line from the North Texas area, and both ends of the line access significant markets with considerable upside potential. When properly developed, the pipeline will yield predictable profits and can be the gateway for Arch to enter other related lines of business. We believe that this acquisition offers a significant opportunity for the company." Arch Petroleum Inc. is an independent oil and gas exploration and production company headquartered in Fort Worth, Texas, with interests in producing properties in Texas, New Mexico, Oklahoma, Louisiana and North Dakota. Arch Production Company is its wholly-owned subsidiary. Arch participates in natural gas transmission through its interest in Saginaw Pipeline Company L.C. -0- 7/14/92 /CONTACT: Randall W. Scroggins, vice president of Arch Petroleum, 817-332-9209 or 800-772-8558/ (ARCH) CO: Arch Petroleum Inc ST: Texas IN: OIL SU: TNM
SH -- NY072 -- 9201 07/14/92 15:04 EDT
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|Date:||Jul 14, 1992|
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