ERAO Energy Revenue America has purchased the Env
Post# of 49
Posted On: 05/13/2014 6:20:01 AM
ERAO
Energy Revenue America has purchased the Envirotek Fuel Systems (Envirotek) which is a 65 mile pipeline with 3,000 acres in the Cherokee basin and three compressors presently transporting gas. ERA has options on an additional 10,000 acres in Nowata County, Oklahoma, (north of Tulsa, OK.) and will add an additional 235 miles of pipeline to the Envirotek system. The pipeline addition will be achieved through a combination of acquisitions and adding new pipeline to the present Envirotek pipeline. As ERA extends the pipeline, carries more gas and interfaces with more producers, the value of the pipeline will increase significantly.
Over the next 5 years Energy Revenue America expects to drill in excess of 500 wells on the 13,000 acres. For every well completed, the reserve value for future gas and oil from the wells becomes a value to ERA as future income. ERA estimates that gas reserves at the end of year 2 will exceed $80M and at the end of year 3 over $150M.
Energy Revenue America has a distinct advantage by owning 250 miles of pipeline network and controlling thousands of acres of leases on land surrounding the pipeline. The pipeline gives ERA a competitive advantage over other companies that must pay approximately 25% of their revenue to transport their gas production. Ownership of the pipeline, control of 13,000 acres alone the pipeline and the buildup of gas reserves for future years revenue will create value for the employees, owners and shareholders of ERA.
Energy Revenue America has purchased the Envirotek Fuel Systems (Envirotek) which is a 65 mile pipeline with 3,000 acres in the Cherokee basin and three compressors presently transporting gas. ERA has options on an additional 10,000 acres in Nowata County, Oklahoma, (north of Tulsa, OK.) and will add an additional 235 miles of pipeline to the Envirotek system. The pipeline addition will be achieved through a combination of acquisitions and adding new pipeline to the present Envirotek pipeline. As ERA extends the pipeline, carries more gas and interfaces with more producers, the value of the pipeline will increase significantly.
Over the next 5 years Energy Revenue America expects to drill in excess of 500 wells on the 13,000 acres. For every well completed, the reserve value for future gas and oil from the wells becomes a value to ERA as future income. ERA estimates that gas reserves at the end of year 2 will exceed $80M and at the end of year 3 over $150M.
Energy Revenue America has a distinct advantage by owning 250 miles of pipeline network and controlling thousands of acres of leases on land surrounding the pipeline. The pipeline gives ERA a competitive advantage over other companies that must pay approximately 25% of their revenue to transport their gas production. Ownership of the pipeline, control of 13,000 acres alone the pipeline and the buildup of gas reserves for future years revenue will create value for the employees, owners and shareholders of ERA.
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