Gary Company Wraps Up Financing on Acquisition
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA subsidiary of Gary-based Sterling Energy Group Inc. has completed the financing of its previously-announced acquisition of Viking Gas Pipeline LLC and Viking Oil and Gas LLC in Kentucky. The deal includes more than 7,000 acres of production leases.
November 14, 2014
News Release
Gary, Ind. — Sterling Energy Group, Inc., a green energy independent power producer, through its wholly owned subsidiary, KyNGO Holdings, has closed on a credit facility with Prairie Street Capital, LLC in Chicago, IL. This financing follows the purchase of Viking Gas Pipeline, LLC, and Viking Oil and Gas, LLC. The acquired Companies, doing business as Kentucky Blue Gas, produce and oil and gas from wells on leased property. Approximately 7000 acres of leases, held by production, are assets of the acquired Companies. Oil is pumped into tanks near wells and transported by trucks and sold to a refinery. The natural gas is transported via a pipeline gathering system. Sterling Energy Group, Inc. plans to connect this pipeline to the pipeline owned by its existing subsidiary, Gulf Star Oil and Gas, LLC and flow all natural gas to an existing industrial customer.
The acquired Companies own 70 miles of natural gas pipeline, a liquid stripping plant, 91 oil and gas wells, and other assets required for the production of oil and natural gas from these fields near Bowling Green, KY. Combined assets of existing and acquired Companies will include more than 90 miles of natural gas pipeline and Oil and natural gas reserves under more than 40,000 acres either owned or leased. The new company will operate as Kentucky Natural Gas and Oil (KyNGO).
“We're delighted to have completed the consolidation of all Kentucky entities and financing that provides a platform from which to grow the businesses,” said Robert Long, President of Kentucky Natural Gas and Oil.
Sterling Energy Group, Inc. is a privately held energy company. Sterling owns and operates a pipeline, an oil and natural gas field, and independently produces electricity as an “exempt wholesale generator”. Sterling chooses opportunities based on its ability to introduce its proprietary technologies to clean up emissions on existing facilities and the ability to utilize opportunity fuels that reduce carbon. This blended with combined heating and power through the use of steam loops where more conventional fuels are required is good for plant viability, creation and preservation of jobs, sustainable electricity at competitive prices, and improvement of the environment.
Prairie Street Capital, Inc. is a boutique investment and advisory firm that provides growth capital, strategic guidance, and operating expertise to help companies successfully maneuver the challenges that come with growth. Funded by owner's own capital, and a group of high net-worth individual investors, Prairie offers high speed and certainty and a potential one-stop solution for companies seeking an exit or capital. Prairie was founded in 1996 by Mr. Michael Barry with a mission to offer companies the best attributes of a strategic and financial partner and to put his own capital to work.
Sources: Sterling Energy Group Inc. and Prairie Street Capital Inc.