Massey Energy Expands Holdings In Northern Appalachia
Monday, December 10th, 2007
Massey Energy Company announce that it has acquired 50% ownership and full lease rights to 35 million tons of high quality coal reserves in the Pittsburgh and Sewickley seams in Marshall County, WV, immediately east of the Ohio River. The transaction increases Massey’s coal reserve holdings in Northern Appalachia to approximately 100 million tons. It also includes oil and gas rights on approximately 15,000 acres of land and provides strategically important access to the Ohio River.
“We are very pleased to expand our position in Northern Appalachia,” said Don L. Blankenship, Massey’s Chairman and CEO. “This region is becoming increasingly important to the coal and energy industry, and this transaction will enable us to take advantage of the growth in demand for Northern Appalachian coal. Additionally, the location of these reserves, with access to the Ohio River, provides key strategic and logistical advantages which add significantly to their value.”
Terms of the transaction included up-front cash consideration of $2.8 million and a long term lease commitment.
Massey recently announced plans to increase annual coal production by approximately 8.0 million tons over the next three years. Development of these newly acquired reserves was not a part of those previously announced plans.
For further information visit: www.masseyenergyco.com