Double G further agreed to advance up to $200,000 to cover the costs of enhancing the gathering systems and compressor stations. Energas will continue to own 100% of the gathering system and compressor stations.
Energas, through its wholly owned subsidiary TGC Inc., a Kentucky Corporation, will be the operator of the field. Double G is to own 80% of the full working interest in each of the wells and Energas will own the remaining 20% of the working interest until payout. After payout, Energas will own 50% of the working interest and Double G will own 50% of the working interest. "This is a win-win plan for both Energas and Double G," stated President George Shaw, "This program will supplement our current project and accelerate the build up of production and reserves for Energas. Additionally, this frees up some working capital to further expand our Kentucky project."
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