Energas Completes Acquisition of Natural Gas Properties in Kentucky.Energy Editors/Business Editors OKLAHOMA CITY--(BUSINESS WIRE)--Aug. 18, 2003 Energas Resources Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :EGSR EGSR Eurographics Symposium on Rendering EGSR Employer Support of the Guard and Reserve EGSR Engineer General Service Regiment ) recently acquired 31 producing gas wells, 148,000 feet (approximately 28 miles) of pipeline, 2 compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve stations and approximately 23,000 leased and 8,500 optioned acres. All of the acquired properties are located in the Appalachian Basin of eastern Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. . Annual revenues from the producing wells and the pipeline exceed $500,000. The properties were acquired from three private corporations for $3,000,000 in convertible notes. The notes bear interest at 8.5% per year and are due in August 2023. At any time prior to August 1, 2023 all or part of the amounts due upon the notes may be converted into shares of the common stock of Energas on the basis of one share of common stock for every dollar of note principal or interest converted. Energas plans to initiate a 3-year development program with a goal of drilling approximately 650 Devonian shale shale, sedimentary rock formed by the consolidation of mud or clay, having the property of splitting into thin layers parallel to its bedding planes. Shale tends to be fissile, i.e., it tends to split along planar surfaces between the layers of stratified rock. natural gas wells on these properties. |
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