Chief Operating Officer
Atlas Pipeline Partners
1521 Locust St. - 5th Floor
Philadelphia, PA 19102
(215) 546-5388 (facsimile)
Atlas Pipeline Partners, L.P. Acquires Gas Gathering System From Kingston Oil Corporation
Philadelphia, PA, January 2, 2022 - Atlas Pipeline Partners L.P. (AMEX:APL) (the "Partnership") announces that, on October 6, 2000, it executed an agreement to acquire the gas gathering system of Kingston Oil Corporation located in southeastern Ohio ("the "System"), for $2.75 million in total consideration consisting of $1.25 million in cash and 88,235 common units of the Partnership. The System consists of approximately 100 miles of pipeline with 1.7 million cubic feet of natural gas throughput per day from more than 240 natural gas wells currently connected to the System. Upon recently obtaining the necessary consents to assign pipeline rights of way, the Partnership now anticipates closing this transaction on January 5, 2001. Partnership management expects that, based on existing gas throughput and anticipated new volumes, this acquisition will be immediately accretive to the Partnership's earnings."
Michael Staines, Chief Operating Officer of the Partnership said, "The acquisition of Kingston's gathering system is significant to the Partnership in that it moves us into another area of the Appalachian Basin where we expect additional drilling over the next few years - drilling that will add substantial gas throughput to the System's existing transported gas volumes."
Further, Mr. Staines stated "Atlas America, Inc., an affiliate of the General Partner of the Partnership, in a separate transaction, has acquired Kingston's Ohio producing oil and gas assets and mineral rights and has indicated its intention to drill more than forty wells that will connect to the System within the next two years. In addition, Atlas America, Inc. has agreed to pay the Partnership a flat fee of $.80 per thousand cubic feet ("mcf") for gathering gas from the existing wells connected to the System and will pay a variable fee 16% of the gross gas sales price of the gathered gas for production from future wells drilled by Atlas America."
Atlas Pipeline Partners, L.P. now owns and operates more than 1000 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio. The Partnership is paid a fee for the natural gas volumes that are gathered and transported through its pipeline system from approximately 3,300 wells that are currently connected to its system.
Statements made in this release may include forward-looking statements, which involve substantial risks and uncertainties. The Partnership's actual results, performance or achievements could differ materially from those expressed or implied in this release as a result of certain factors, including competition within the energy industry, climactic conditions and the price of gas in the Appalachian area, actual versus projected drilling activity and volumetric production from wells connected to the Partnership's gas-gathering pipeline system, and the cost of supplies and services in the energy industry.