US Natural Gas Corp., St. Petersburg, Fla., has reported that the company recently acquired a newly rebuilt Knox Western compressor to be set at the company’s West Virginia natural gas development project compressor station.
The compressor is a two-stage Knox Western with a three phase 250 hp Reliance engine. It will replace the currently operational compressor set on the company’s Wayne County, West Virginia, natural gas development project. The compressor was refurbished in late 2010 and the specifications for delivery will allow the company to deliver up to 1.2 million cubic feet of natural gas on a daily basis. It is scheduled to be set and plumbed in the first week of April.
US Natural Gas Corp WV, a wholly owned subsidiary, is in discussions with a local natural gas producer regarding a potential acquisition of its entire operations. If completed, the acquisition will add approximately 5,000 acres of mineral rights leases and 42 operational natural gas wells of which 21 are currently in production. Current production is sold on a contract basis to a local utility company, with outside purchasing opportunities available. Management anticipates that discussions will continue over the coming weeks as further due diligence is completed, and a final decision reached during the second quarter.
"The addition of the new compressor will allow us to place wells into production with the confidence that our system can handle the increased gas volume on a daily basis," stated Wayne Anderson, President of US Natural Gas Corp. "We are excited to entertain the potential acquisition of a well respected producer in our area of operation. Management will continue to identify potential acquisition targets who concentrate on the production of natural gas so long as the commodity is priced below five dollars. If we see a sustained move above the five dollar level, our focus will slowly shift to that of exploration on our leasehold base."
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