GATEWAY ENERGY CORPORATION ANNOUNCES SIX MONTH OPERATING
Results and Additions to Its Management Team
OMAHA, Neb., Oct. 16 /PRNewswire/ -- Gateway Energy Corporation
("Gateway") (OTC Bulletin Board: GNRG) released earnings for the six
months ended August 31, 1997. The Company reported operating margins
of $683,000 on revenues of $6,423,000 and net income before taxes of
$136,000. This compares to operating margins of $1,277,000 on revenues
of $10,412,000 and income before taxes of $126,000 for the same period
in 1996. Earnings for common stock for the six months ended August 31,
1997 were $121,700 compared to a loss of $1,053,800 for the same period
in 1996, reflecting the elimination of preferred dividends resulting
from the Recapitalization consummated in March 1997. The decrease in
revenues primarily results from the termination of a short-term
contract (March 1996 to July 1996) with a major producer and the
discontinuance of gas marketing activities. Operating margins were
adversely affected by wet and cool weather in Caddo and Washita
Counties in Oklahoma, where the Company serves over 600 rural
irrigation customers.
The Company also announced the addition of two operations officers.
Bob Panico will serve as Vice President of Gateway Offshore Pipeline
Company and Carl Robey as Vice President of Gateway Pipeline Company.
Mr. Panico will handle commercial transactions for the pipeline systems
in Galveston Bay and the Texas State Waters, and Mr. Robey will handle
commercial transactions for the Company's systems located in Texas,
Oklahoma, and Louisiana.
Mr. Panico has spent over 18 years in the natural gas industry, with
experience in natural gas processing, gathering, supply, marketing,
storage and transportation in both the regulated and unregulated
segments of the industry. He most recently was employed by Duke Energy
Field Services, Inc. (formerly PanEnergy) and has held other positions
with Williams Bros, American Oil and Gas, Tenneco, and United Gas
Pipeline.
Mr. Robey brings to Gateway 15 years of experience in the energy
industry, including seven years in natural gas supply on the Texas Gulf
Coast. His business experience also includes natural gas processing,
marketing, and production. He most recently was employed by EnerVest
Management Company L.C. and held other positions with American Oil and
Gas, Cabot Transmission Corporation, and MidCon Pipeline Company
(formerly UTTCO).
SOURCE Gateway Energy Corporation
-0- 10/16/97 /CONTACT: Larry J. Horbach,
Chairman & CEO, 402-330-8268; Donald L. Anderson, Investor Relations,
760-777-1141/
(GNRG)
CO: Gateway Energy Corporation ST: Nebraska IN: OIL SU: PER ERN
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