Pardee Resources Company (OTC: PDER) announced today that it closed on the acquisition of approximately 400,000 acres of oil and gas mineral interests located in West Virginia, Virginia and Kentucky for $60.1 million. “The single largest portfolio of its kind in the Central Appalachian Region, these assets increase our oil and gas holdings in the Region to over 600,000 acres, and represent a significant step towards enhancing our oil and gas assets while creating shareholder value and developing a platform for future growth,” said Carleton P. Erdman, President and Chief Executive Officer. “The acreage is currently leased to 27 different operating companies and generates royalty income from over 2,500 active natural gas wells. The properties are expected to continue producing for decades while providing significant development opportunities as technology and markets allow.” The acquisition was financed through available cash and will be immediately accretive to earnings.
In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include statements that relate to impact of the acquisition described above. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: difficult economic conditions, the possibility of increased or adverse government regulation, and the risk that the oil and gas reserves may not be as we currently expect, and other risks and uncertainties. As a result, these forward-looking statements may turn out to be incorrect. We are under no obligation to (and expressly disclaim any obligation to) update or alter these forward-looking statements whether as a result of new information, future events or otherwise.