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Penn Virginia Resource Partners Acquires Coal Resources and Timber Land
Radnor, Pennsylvania, USA 27 May 2008 -- (BusinessWire) -- Penn Virginia Resource Partners, LP (NYSE: PVR) today announced the acquisition of approximately 29 million tons of coal reserves and an estimated 56 million board feet (mmbf) of hardwood timber in western Virginia and eastern Kentucky from a private seller for USD 24.5 million in cash. Funding for the acquisition was provided by borrowings under PVR’s revolving credit facility.

The coal properties are located on approximately 34,000 acres in Lee County, Virginia, and Harlan County, Kentucky. The high-quality reserves have been leased to and will be mined by Powdul Acquisition LLC, a subsidiary of International Coal Group, Inc. (NYSE: ICO). Deep mine production from the first mine is expected to commence in the second half of 2008 Production from these properties is expected to be sold in the steam and compliance utility market and also in the metallurgical and steel market.

The timber properties are located on approximately 20,000 acres. PVR will manage the timber operations and will employ contractors to harvest timber. Timber production is expected at an annualized rate of approximately 2.0 mmbf per year.

PVR expects cash flow from the coal royalty payments and timber sales, before financing costs, to be approximately USD 2.4 million during 2009.

Headquartered in Radnor, Pennsylvania, Penn Virginia Resource Partners, LP (NYSE: PVR) is a publicly traded limited partnership formed by Penn Virginia Corporation (NYSE: PVA). PVR manages coal properties and related assets and operates a midstream natural gas gathering and processing business.

For more information about PVR, visit www.pvresource.com.


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