Alpha bets on shale gas
Post Date: 02 Jul 2015 Viewed: 336
Alpha Natural Resources is doubling down on its Marcellus Shale gas exploration venture in Greene County.
The Virginia-based coal company announced it is buying EDF Trading Resources' share of their 50-50 joint venture for $126 million.
Alpha and EDF entered into the deal in May 2013 and pledged to develop more than 20,000 acres in southwestern Pennsylvania with at least six wells being drilled by the end of last year.
But in Wednesday’s announcement, Alpha said the first well is expected to be drilled within the 30 days.
The move comes amid news that Alpha, whose stock closed at 28 cents on Wednesday, has engaged consultants to help restructure its debt.
This isn’t Alpha’s first experience with shale. Its joint venture with Rice Energy yielded at least $100 million for the company when Canonsburg-based Rice took its company public last year.