Gateway Energy Corporation (GNRG.OB) announced that representatives of Madisonville Gas Processing have informed the company that their Madisonville Gas Project in East Texas is now fully operational. As a result, the company is able to treat an additional 50,000 Mcf/d of gas, which will lead to increased revenues in the near feature.
Currently, there are six wells drilled in the area near the Madisonville Project. Four of these wells have already been connected to the GP treatment plant, with the two other wells still under construction.
Robert Panico, President and Chief Executive Officer of Gateway, stated, “The initial production from the expanded MGP treatment plant associated with the four existing wells is expected to more than double revenue generated from our Madisonville pipeline system. Gateway’s existing pipeline system has available capacity to accommodate the total treating capacity of 68,000 Mcf/d, at no additional capital expenditure or operating cost.”
He continued to say, “Our current management team began developing Gateway’s business plan in 2005, which included the following key objectives: (1) change the direction of the company to a midstream focus, (2) optimize existing assets, and (3) implement a midstream energy growth strategy. The Madisonville Project, which we renegotiated in 2005, represents an example of our successful efforts to optimize the value of our existing assets.”
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