BRISTOL, Va., July 1, 2015 /PRNewswire/ -- Alpha Natural
Resources, Inc. (NYSE: ANR) announced today that its wholly-owned
subsidiary, Pennsylvania Services Corporation (PSC), has acquired
the 50% interest in its natural gas exploration and production
joint venture, Pennsylvania Land Resources Holding Company, LLC
(PLR), owned by EDF Trading Resources, LLC (EDFTR). The
$126 million transaction, which makes
PSC the sole owner and operator of the venture, allows Alpha to
expand and control a highly economic natural gas development
program composed of over 25,000 net acres and associated
infrastructure in the Marcellus Shale.
EDFTR and PSC initially formed the PLR joint venture in
May 2013 to exploit a large,
concentrated Marcellus Shale gas resource in Greene County, Pennsylvania. The
concentrated acreage position is considered to be in the "core of
the core" of the Marcellus Shale, one of the most profitable
natural gas plays in the United
States, and located adjacent to some of the most productive
wells in the basin to date. PLR's large, contiguous acreage
position will allow efficient development of the resource with long
laterals, maximizing both well productivity and returns.
Significant existing pipeline capacity located adjacent to or
crossing PLR's leased acreage also provides strong transportation
optionality.
Brian Sullivan, Alpha's Executive
Vice President and Chief Commercial Officer, stated, "We expect
drilling on the first pad to begin in the next 30 days, with an
estimated 4 wells completed by the first quarter of next
year." PLR's concentrated position when it entered into the
joint venture in May 2013 was 12,000
net acres, which has since more than doubled. Additionally,
two well pads have been constructed with a total of 14 permitted
wells. "Our current leasehold position gives us an immediate
drilling inventory of more than 50 locations," Sullivan added.
Alpha Natural Resources Chairman and CEO Kevin Crutchfield also emphasized the growth
potential associated with the transaction. "Alpha has broad
resource experience already in this basin and this acquisition
positions us to derive exceptional future value from these gas
assets and operational benefits with our existing coal
operations." PLR also controls rights to develop gas
resources located at other depths, including the deeper Utica
Shale, on the majority of the leased acreage and several adjoining
properties.
EDFTR is a subsidiary of EDF Trading, a leading provider of
market services to the wholesale gas and power sectors in the US
and Canada, which is a subsidiary
of EDF Group (EDF), Europe's
leading electricity producer. Alpha acquired EDFTR's interest
upon EDF's decision to exit North American upstream exploration and
production (E&P) activities.
BMO Capital Markets served as Alpha's financial advisor on the
transaction, and also provided a fairness opinion to Alpha's Board
of Directors.
About Alpha Natural Resources
Alpha Natural
Resources is one of the largest and most regionally diversified
coal suppliers in the United
States. With affiliate mining operations in Virginia, West
Virginia, Kentucky,
Pennsylvania and Wyoming, Alpha supplies metallurgical coal to
the steel industry and thermal coal to generate power to customers
on five continents. Alpha is committed to being a leader in
mine safety with our Running Right safety process, and an
environmental steward in the communities where its affiliates
operate. For more information, visit Alpha's website
(www.alphanr.com) or like Alpha's Facebook page
(https://www.facebook.com/AlphaNaturalResources).
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SOURCE Alpha Natural Resources