Rice Energy announced its entry into a stalking horse asset purchase agreement with a subsidiary of Alpha Natural Resources to acquire Marcellus and Utica assets in central Greene County, PA for $200 million in cash, subject to purchase price adjustments.
Rice Energy will acquire leasehold interest in approximately 27,400 net undeveloped Marcellus acres plus an additional 3,200 gross acres owned in fee that are leased to Rice Energy and currently generating royalty cash flow. In addition, the aforementioned acreage includes rights to the deep Utica on 23,500 net acres.
Rice Energy’s bid protections, such as stalking horse bid certain break up fees and expense reimbursements, are subject to U.S. Bankruptcy Court approval. If Rice Energy’s stalking horse bid is approved by the Court, Alpha Natural Resources may be required to hold an auction for the assets, and consummation of the acquisition would be subject to Rice Energy’ being selected as the successful bidder in any such auction and Court approval.
Read more ANR bankruptcy news.
The post Alpha Natural Resources Purchase Agreement Announced appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.