ReoStar Energy Corp (REOS)

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ReoStar Energy Corporation Announces Sale of Interest in Tri-County Gas Gathering System
Thursday June 7, 12:35 pm ET

FORT WORTH, Texas--(BUSINESS WIRE)--ReoStar Energy Corp. (OTCBB: REOS - News) today announced that it completed the sale of its 30 percent interest in the Tri-County Gas Gathering System to Cimmarron Gathering, LP., an indirect wholly-owned subsidiary of Copano Energy, L.L.C. (Nasdaq: CPNO - News), for an approximately $15 million all cash transaction.

Mark Zouvas, CEO of ReoStar indicated the following; "This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area. The original purpose of building and owning the pipeline was to insure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating, Inc., negotiated a new gas gathering contract that mitigates our original concerns. We are very pleased to have concluded the successful sale of our Tri-County interest with Cimmarron and its parent Copano Energy and look forward to a mutually beneficial relationship with these quality firms."

About ReoStar Energy Corporation

ReoStar Energy Corporation, headquartered in Fort Worth, Texas, is a publicly traded (OTCBB:REOS - News) oil and gas company engaged in the acquisition, development and production of natural gas and oil properties with operations primarily focused on developmental resource plays and enhanced oil recovery projects.