AMERICAN OIL AND GAS CORPORATION SIGNS AGREEMENT TO ACQUIRE THE MAPLE GAS CORPORATION
AMERICAN OIL AND GAS CORPORATION SIGNS AGREEMENT TO ACQUIRE
THE MAPLE GAS CORPORATION
HOUSTON, March 2 /PRNewswire/ -- American Oil and Gas Corporation (AMEX: AOG) announced today that it has executed an agreement to acquire the assets and assume the related liabilities of The Maple Gas Corporation of Dallas. The assets consist of ten natural gas processing plants and approximately 1,300 miles of related gas gathering pipelines located in the Panhandle Field of Texas and Oklahoma and the Permian Basin of West Texas and southeastern New Mexico. The purchase price will be approximately $80 million, and the consideration will consist of cash, notes and the assumption of Maple's existing liabilities. The acquisition is subject to, among other conditions, the consents of American's and Maple's lenders. AOG expects to close the transaction on or before March 31, 1992.
The acquisition will increase significantly AOG's gas processing capabilities. The facilities to be acquired are in American's primary service area, and most are connected to its Westar pipeline system. The Maple facilities and the Westar pipeline system were constructed and operated as an integrated gas gathering, processing and transmission business before being separated and sold in 1989. American expects to achieve significant synergies by recombining these assets.
American Oil and Gas Corporation is engaged in the natural gas gathering, transportation and marketing business.
/CONTACT: William P. Conner, chief financial officer of American Oil and Gas Corporation, 713-739-2900/
(AOG) CO: American Oil and Gas Corporation; Maple Gas Corporation ST: Texas IN: OIL SU: TNM TQ -- NY028 -- 3851 03/02/92 10:25 EST