RADNOR, PA, December 15, 2010 FirstCall /-Penn Virginia Resource Partners, L.P. ("PVR") (NYSE: PVR) announced today that its subsidiary, Penn Virginia Operating Company, LLC, has executed a definitive agreement for the purchase of certain mineral rights and interests of oil and gas royalties in Kentucky and Tennessee from Begley, properties LLC ("Begley") for approximately $ 97,25 million. The mineral rights include approximately 102 million tons of coal reserves and resources. There are currently 14 active producing mines underground and surface approximately 126 000 acres of mineral assets acquired with 10 major coal mining tenants. Coal is mainly consumed by major utilities electricity and other industrial customers in the southeast of the United States and approximately 75% of production scheduled for the next five years to permit steam coal. In addition, the interests of oil and gas royalties to acquire include 100% of wells for oil and gas 158 interests.
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In support of the acquisition, Penn Virginia resource GP, LLC, general partner of PVR, agreed to abandon definitively at $525,000 (worked on each quarterly payment distribution) annually in the distributions incentive otherwise payable by PVR partner sponsored in the acquisition. This support would become only granting effective following PVR equity to finance the purchase.
William h. Shea, Jr., general partner of PVR, CEO stated: "we are pleased to have this opportunity to expand our central base of Appalachian coal reserves. Begley properties acquisition will provide significant geographical synergies with the PVR active in the Central Appalachian coal region, will contribute to the diversification of our tenant base and increase access to strategic rail transportation to the markets of Southeast utility service facilities. We expect Begley acquisition for arrival in flows of distributable cash per common unit for unitholders PVR in the first year following the closure of the acquisition. »
The transaction is subject to customary closing conditions and should close at or before the end of fiscal 2010 or in the first quarter of 2011. PVR is expected closing of the acquisition of Begley occur before merger announced previously with Penn Virginia GP Holdings, L.P., is currently scheduled to occur during the first quarter of 2011 calendar operation.
Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a partnership that owns and manages the coal and properties of natural resources and related assets traded company and owns and operates a natural gas to existed, collection and processing companies. Have more than 800 million tonnes of proven reserves in the North and Central Appalachian coal and Illinois and San Juan basin; our natural gas midstream assets are located primarily in Texas, Oklahoma and Pennsylvania and include more than 4,100 miles of natural gas, gathering pipelines and 6 systems with approximately 400 million foot cubes per day of processing capacity. For more information on PVR, visit www.pvresource.com.
Certain statements contained herein are not descriptions of historical facts are "forward-looking" statements within the meaning of the federal securities laws. Because such statements involve risks, uncertainties and contingencies, actual results may vary materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are limited to the following: when and if the acquisition will be distributable; cash the request provided for coal; the volatility of the prices of coal; extent to which the quantity and quality of the actual production differs from recoverable coal estimated; delays in planned start dates for our tenants mining operations and related infrastructure projects of coal; environmental risks affecting the operation of reserves of coal or production; the time of receipt of the necessary Government enables us and our tenants. the experience and the financial situation of our coal, including ability to tenants, tenant our meet their royalties, for the environment, rehabilitation and other obligations to us and others. the ability of our tenants to produce a sufficient quantity of coal on an economic basis of our reserves and favourable contracts for this production; potential failure of equipment and delays; repair unexpected geological problems. the legislative and regulatory; environment and the political and economic conditions, including the impact of potential terrorist acts.
These risks, uncertainties and contingencies are discussed in detail in the press releases and public periodic deposits of the SEC, including annual reports on form 10-K for the year ended December 31, 2009 and the most recent quarterly reports on form 10-Q for PVR PVR. Many factors that will determine the future outcome of PVR are beyond the capacity of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect the views of the direction to the present date. PVR undertakes no obligation to revise or update the forward-looking statements, or make any other forward-looking statements, whether due to new information, future events or otherwise.
Phone: 610-975-8204 fax: 610-975-8201
SOURCE Penn Virginia Resource Partners, L.P.
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