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

NRC proposes $17,500 penalty against Kewaunee nuclear power plant

The U.S. Nuclear Regulatory Commission (NRC) proposed a $17,500 fine against Dominion Energy ...

Turkey-Japan nuclear power plant agreement approved

An international agreement to build a second nuclear power plant in Turkey was accepted by Pa...

Groups oppose call by New Mexico utility for higher rates

A proposal by New Mexico's largest electric provider to raise its rates is running into oppos...

NH Electric Co-op, Liberty customers to see rate decrease

PLYMOUTH, N.H. (AP) - New Hampshire Electric Cooperative and Liberty Utilities say customers ...

DOE, US Army Corps extends MOU for Hydropower

The Departments of Interior, the Department of Energy (DOE), and the U.S. Army Corps of Engin...

Atlantic Power Corp. to sell wind energy portfolio for $350mn

Atlantic Power Corp. (NYSE: AT) signed an agreement to sell its wind generation portfolio to ...

General Compression, SustainX to merge as GCX Energy Storage

General Compression and SustainX, both fuel-free compressed air energy storage (CAES) technol...

Alliant subsidiary advances emissions projects at Iowa coal plants

Interstate Power and Light (IPL), which is a subsidiary of Alliant Energy (NYSE: LNT), told t...

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

Magnum Hunter Resources Declares Monthly Cash Dividend on Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock

Magnum Hunter Resources Declares Monthly Cash Dividend on Series C Preferred Stock, Ser...

Totally Green Reports 2014 Full Year Results

Totally Green Reports 2014 Full Year Results

OKI Data Americas Introduces the MC873dn -- a New Smart, Compact, Wide Format A3 Color Multifunction Device for Small to Mid-Sized Workgroups

OKI Data Americas Introduces the MC873dn -- a New Smart, Compact, Wide Format A3 Color ...

Vega Biofuels Sets Date for Shareholder Conference Call

Vega Biofuels Sets Date for Shareholder Conference Call

Blue Earth Announces Sumter CHP Plant Energized on March 30, 2015

Blue Earth Announces Sumter CHP Plant Energized on March 30, 2015

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 >>