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Gas industry

Clinton Gas Systems Inc. Reaches Agreement with Columbia Gas Transmission Corp.

Strategic Insights

— 1 min read

Clinton Gas Systems Inc., a natural gas and oil exploration and production company, has reached an agreement with Columbia Gas Transmission Corp. to settle its bankruptcy claim against the latter. The settlement is expected to bring in approximately $5 million for Clinton Gas Systems Inc. The company plans to use the funds to reduce debt and finance its oil and gas exploration efforts and gas marketing business.

Key Takeaways:

  • Clinton Gas Systems Inc. has reached an agreement with Columbia Gas Transmission Corp. to settle its bankruptcy claim, resulting in an estimated $5 million windfall for the company.
  • The settlement proceeds will be used to reduce debt and provide flexibility in financing the company's oil and gas exploration efforts and gas marketing business.
  • Clinton Gas Systems Inc. has recently drilled a new discovery well in Licking County, Ohio, which is producing at the rate of 300 barrels of oil per day.
  • The new well produces from the Rose Run formation, and the company plans to drill approximately 50 wells and participate in another 30 wells drilled by others during 1995.
  • The Clinton Oil Co., an operating subsidiary of Clinton Gas Systems Inc., has a large lease block around the discovery well.
  • Jerry D. Jordan, chairman of Clinton Gas Systems Inc., stated that the settlement and new discovery well will provide a solid foundation for the company's future growth and success.

Statistics:

  • $5 million: estimated amount expected from the settlement with Columbia Gas Transmission Corp.
  • 300 barrels of oil per day: production rate of the new discovery well
  • 50 wells: number of wells Clinton Gas Systems Inc. plans to drill in 1995
  • 30 wells: number of wells Clinton Gas Systems Inc. plans to participate in, drilled by others, in 1995
  • 4770 Indianola Ave.: location of the principal offices of Clinton Gas Systems Inc. in Columbus, Ohio
  • NASDAQ: stock symbol for Clinton Gas Systems Inc. shares

Sources:

  • Business Wire, June 21, 1995
  • Clinton Gas Systems Inc. press release, June 20, 1995 (as cited in the Business Wire article)

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