Pardee Resources Spends $60.1 Million For Appalachian Acreage

Purchased 400,000 acres of oil and gas interests with more than 2,500 active natural gas wells.

Pardee Resources Co. (OTC: PDER) acquired in December an estimated 400,000 acres of oil and gas mineral interests in West Virginia, Virginia and Kentucky for $60.1 million.

The acreage is currently leased to 27 different operating companies and generates royalty income from more than 2,500 active natural gas wells.

The acquisition adds to the Philadelphia-headquartered company's oil and gas holdings in more than 1,100 producing oil and gas wells located mainly in the Appalachian and Gulf Coast regions.

"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, while creating shareholder value and developing a platform for future growth," Carleton P. Erdman, president and CEO, said in a release.

Erdman said the company expects the properties to continue producing for decades while providing significant development opportunities as technology and markets allow.

The deal was announced closed on Dec. 20. The acquisition was financed through available cash and will be immediately accretive to earnings. The company's oil and gas division operates out of offices in Charleston, W.Va. and Sugar Land, Texas.