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Executive Summary

UNIGAS Corporation is developing a state of the art 30 BCF gas storage system in Oklahoma for intrastate and interstate com­merce. Major pipeline connections are expected initially to be to TRANSOK, ONG and CENTERPOINT mainline systems. The storage field is designed for a 600 MMMBTU/D (600 Million CFD) deliverability.

The Unigas storage system is located in Okfuskee (Oak-fus-kee) county which is in SE Oklahoma on the western edge of the Arkoma Basin and the eastern edge of the Anadarko Basin in Township 10 N Range 9 E, at approximately Lat. 35.333 and Long. 96.3594. Unigas has received state certifica­tion from the Oklahoma Corporation Commission and is continu­ing engineering and construction contract negotiations. FERC certification is expected later.

Unigas has engineered and designed a 30 BCF working gas capability in a formerly depleted sandstone gas reservoir. Indi­vidual gas wells initially produced in excess of 140 MMCFD from this reservoir, with total historical production above 50 BCF.

The Unigas system is a state of the art project combining massive deliverability horizontal wells and 4D seismic to provide a gas storage system designed from the ground up to encompass the best available technology in engineering and operations.

Operations are planned to start in 2007 with full operations in 2007-2008 time period. Clients will use this system on a FIRM contract basis. An experienced storage operator with multiple ongoing storage fields and several decades experi­ence provides daily operations.

Gas storage system is designed to hold up to 30 BCF gas and deliver in excess of 600 MMCFD.
Access to major pipelines and interconnects that move gas to the market zones across the country.
Available electric power from competitive multiple major generators in the area allow redundant power supply and greater reliability.
Major merchant power development within miles of storage location.
Large major producing basins in the region, Barnett Shale TX, Anadarko Basin, OK, Arkoma Basin OK, Woodford Shale, Caney Shale, Coal Bed Methane, Fayetteville Shale, with major new developments for gas in Oklahoma, Arkansas and Texas.
This system can be the largest non-utility storage system in Oklahoma when fully developed.
No environmental problems associated with this site.
Surface Area in 3 mile by 2-mile area, Storage is 2,680 surface acres.
Storage System available for: weather sensitive demand, merchant trading, peaking services, power generation requirements, pipeline load balancing and other gas services.