Gateway Sees New Drilling Near its Offshore Pipeline Assets

Gateway Energy anticipates new drilling activity near its offshore pipeline assets in the Gulf of Mexico as a result of the Texas General Land Office Oil and Gas Lease Sale held April 6, 2004.

Three companies acquired nine blocks within one mile of Gateway Offshore Pipeline Company's 20-inch Shipwreck pipeline system and another seven blocks were acquired within several miles of the pipeline.

Robert Panico, Vice President of Gateway Offshore Pipeline Company, stated, "With the strategic location and available capacity of the Shipwreck system, Gateway is poised to benefit from the expected increase in drilling activity in the shallow Texas state waters of the Gulf of Mexico."

Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore in Texas and federal waters of the Gulf of Mexico. The Company also owns the exclusive U.S. license for a state-of-the-art, patented process for the rejection of nitrogen from natural gas streams.