Penn Virginia Resource acquires coal property in Central Appalachia

26 May 2006 -- Penn Virginia Resource Partners, L.P. today announced the acquisition of the lease rights to approximately 69 million tons of coal reserves from a private seller for $65 million of cash.

The leased reserves are located on approximately 20,000 acres in Logan, Boone and Wyoming Counties, West Virginia. The reserves include approximately 21 million tons of compliance and high quality steam coal, which are currently being surface mined and produced at the rate of approximately 2.3 million tons per year. The reserves also include approximately 27 million tons of compliance grade deep mineable steam coal and approximately 21 million tons of deep mineable high volatile metallurgical coal.

PVR has entered into sublease agreements with operators who plan to use an existing permit to develop an initial deep mine expected to begin production in 2007 and to apply for permits necessary to develop additional deep mines over the next four years. All mines on the property are expected to be fully operational by approximately 2011 and annual production from the property is expected to exceed three million tons by 2009. The acquisition is expected to be accretive to net income, and cash flow from operations from the property over the first 12 months is expected to be $4.0 to $4.5 million.

A. James Dearlove, Chief Executive Officer of the Partnership's general partner, said in a statement, "We expect coal production from the property by 2009 to be sustainable at over three million tons per year for the following ten years. Acquisitions of this type are important to PVR's ability to sustain and increase coal related cash flows over the long term."

Sponsored by FLSmidth

Related Articles

West Virginia state carbon plan OK House bill passes EPA Environmental Protection Agency

WVa House passes bill letting lawmakers OK state carbon plan

The House of Delegates has passed a bill letting lawmakers approve state plans to meet proposed federal carbon emission standards.

TECO Energy TECO Coal amendment Cambrian Coal Corporation

TECO amends deal to sell coal business unit

TECO Energy (NYSE: TE) said it has entered into a second amendment of its agreement with Cambrian Coal Corp. to modify terms related to the sale of TECO Coal.

Follow Power Engineering on Twitter
Latest News
05/27 Henry Hub Average Natural Gas Spot Prices

05/27 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

Siemens to provide the first H-class power plant technology in Mexico

Siemens has been awarded a contract to supply two SGT6-8000H gas turbines and two generators ...

EIA report: Clean Power Plan will lower CO2 emissions

Carbon dioxide (CO2) emissions in the power sector declined by 363 million metric tons betwee...

Nuclear decommissioning cooperation agreement signed

Vattenfall Europe Nuclear Energy (VENE) and E.ON Technologies (ETG) are cooperating on the de...

Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended May 23, 2015.

West Virginia PSC approves base rate hike for Appalachian Power and Wheeling Power

The West Virginia Public Service Commission on May 26 authorized the Appalachian Power Co. (A...

NRC staff official delegated to approve Watts Bar 2 operating license

Members of the Nuclear Regulatory Commission (NRC) have voted to delegate authority to the di...

Duke Energy receives approval to build 5MW solar power plant in Orlando

Duke Energy Florida (NYSE: DUK) received approval to build, own and operate a 5-MW solar faci...

Power Engineering Current Issue

01/01/2015
Volume 119, Issue 1
1501pe-cover-lg
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Buyers Guide Categories

Power Industry Wire News

NW Natural Reports on 2014 Results at Annual Meeting of Shareholders

NW Natural Reports on 2014 Results at Annual Meeting of Shareholders

Trelleborg Senior Appointment Signals Industry Ambition

Trelleborg Senior Appointment Signals Industry Ambition

Planet Resource Recovery Completes PetroLuxus(TM) Application Training to Mexican Companies in the Oil Sector

Planet Resource Recovery Completes PetroLuxus(TM) Application Training to Mexican Compa...

Interpoll Laboratories, Inc. to Exhibit at 31st Annual International Fuel Ethanol Workshop & Expo

Interpoll Laboratories, Inc. to Exhibit at 31st Annual International Fuel Ethanol Works...

EVTN Announces Voraxial(R) Shipment for Oil Spill Response

EVTN Announces Voraxial(R) Shipment for Oil Spill Response

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>