Sago Energy Acquires Jameson Gas Plant and Gathering System
SUGAR LAND, Texas, April 4, 2003 -- Sago Energy, LLC, announced today that it has acquired the Jameson Gas Plant and Gathering System from Devon Energy Corporation. Located in Coke County, Texas, the Jameson Plant and associated natural gas gathering system consists of approximately 2,300 miles of pipeline and spans 14 counties on the eastern shelf of the Permian Basin in West Texas.
The Jameson plant is capable of processing 50 million cubic feet of natural gas per day. The plant fractionates product for local propane, butane and natural gasoline markets, and also markets natural gas liquids in Mt. Belvieu, Texas.
"Acquisition of the Jameson facilities will facilitate expansion of our midstream gas gathering business in Texas," said Ken Purgason, president and chief executive officer. Purgason added that Sago plans to aggressively pursue the addition of new reserves to the system as well as other acquisition opportunities in the midstream gas sector.
In completing the transaction, Sago closed on a preferred equity offering with Haddington Ventures, L.L.C. and Quantum Energy Partners II, LP. In addition to the preferred equity offering, the Company successfully closed on a senior debt financing provided by Guaranty Bank, FSB. Weisser, Johnson & Co. advised Sago on the transaction.
Sago Energy, LLC is an independent, full service, midstream company providing natural gas producers with processing, gathering, marketing and other related services, with assets in Texas and Louisiana. Sago's headquarters is located at 14090 Southwest Freeway, Suite 460, Sugar Land, TX 77478. For additional information, visitwww.sagoenergy.com.
Haddington Ventures, L.L.C. provides capital to the energy industry, including mid-stream oil and natural gas companies, emerging energy technologies, and electric generation, transmission, and distribution companies. Haddington's limited partners include affiliates of electric and gas utility holding companies Vectren Corporation (NYSE: VVC) and Unisource Energy Corporation (NYSE: UNS), and affiliates of financial groups Citigroup Inc. (NYSE: C) and The Prudential Insurance Company of America (NYSE: PRU). Additional information on Haddington Ventures is available at www.hvllc.com.
Quantum Energy Partners is a private equity fund specializing in the energy industry. Quantum primarily invests in oil and gas companies focused on building their reserve base through acquisitions, exploitation and exploration, but also considers opportunities in the mid-stream, gas storage and independent power sectors. With over $325 million in capital under management, Quantum is an ideal partner for proven and successful energy entrepreneurs who desire to harness Quantum's substantial experience as owners, operators, financiers and advisors of oil & gas and mid-stream companies to augment their skill set in order to successfully build and ultimately exit an energy company. For more information on Quantum, or to submit information on your company, please visitwww.quantumep.com or call either S. Wil VanLoh, Jr. or Toby R. Neugebauer at (713) 225-4800 or (806) 771-1137, respectively.