PHILADELPHIA, Nov. 23 /PRNewswire/ -- Pardee Resources Company is pleased to announce that on Friday, November 20, 2009, the Company closed on a $26.68 million acquisition of a 50% interest in approximately 19 million tons of coal reserves located in the northwestern Colorado coal producing basin. The coal reserves are currently leased, permitted, and in production in one of the basin's most efficient, long-wall underground mining operations. We expect the reserves to be fully mined over the next 3 1/2 years, during which time the acquisition is expected to be significantly accretive to earnings. This investment represents the Company's first coal investment outside the Central Appalachian basin, thereby helping to diversify the sources of our future coal revenues. The acquisition was financed through $20.68 million in cash and $6 million in bank debt.

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include statements that relate to impact of the acquisition described above. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: difficult economic conditions, the possibility of increased or adverse government regulation, and the risk that the coal reserves may not be as we currently expect, and other risks and uncertainties. As a result, these forward-looking statements may turn out to be incorrect. We are under no obligation to (and expressly disclaim any obligation to) update or alter these forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE Pardee Resources Company