Penn Virginia plucks Appalachian reserves

LIMITED partnership Penn Virginia Resource Partners has acquired coal reserves as well as oil and gas assets in southern West Virginia from an unnamed seller in a $US21.6 million deal.
Penn Virginia plucks Appalachian reserves Penn Virginia plucks Appalachian reserves Penn Virginia plucks Appalachian reserves Penn Virginia plucks Appalachian reserves Penn Virginia plucks Appalachian reserves

The Lee Ranch complex. Courtesy Penn Virginia Resource Partners.

Donna Schmidt

The company said Wednesday the reserves at the properties in Kanawha and Boone counties total 18.6 million tons. It also purchased associated timber, oil and gas assets on more than 4700 acres.

Officials confirmed the coal reserves had ideal access to both rail and river barge transport facilities and that other deep mines are located on or adjacent to the properties.

PVR did not provide any details on its plans for the reserves, or any timeline for development. However, chief executive officer for PVR’s general partner William Shea said the block was fully leased and included metallurgical grade and thermal coal reserves.

“We are pleased to have the opportunity to acquire additional attractive natural resource assets to expand our reserve base in central Appalachia,” he said.

“These properties are in close proximity to other PVR central Appalachian assets, which will allow us to manage them from our Chesapeake, West Virginia office with existing personnel.”

Penn Virginia Resource Partners currently owns approximately 900Mt of proven coal reserves in northern and central Appalachia as well as the Illinois and San Juan basins.

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