SOURCE: Atlas Energy Resources, LLC

February 20, 2008 10:04 ET

Atlas Energy Resources, LLC Announces a 12% Increase in Proved Reserves in the Second Half of 2007; Marcellus Drilling Sparks Replacement of 663% of Production

PITTSBURGH, PA--(Marketwire - February 20, 2008) - Atlas Energy Resources, LLC (NYSE: ATN) (“Atlas Energy” or “the Company”) announces today that in the last six months of 2007, the Company grew its proved reserves by 12% to 897 billion cubic feet equivalent (“Bcfe”) and replaced 663% of its production almost entirely through drilling activities. These proved reserves had a present value of estimated future net revenues, before income taxes, discounted by 10% (S.E.C. PV-10) of $1.5 billion based on the NYMEX price effective for December 31, 2007 for natural gas and oil of $6.79 and $95.95, respectively. However, the present value discounted by 10% of the Company's proved reserves increases to $2.1 billion after applying the natural gas and oil prices determined by Atlas Energy’s hedge portfolio, and, for unhedged volumes, the February 14, 2008 12-month NYMEX strip. Approximately 99% of these reserves were natural gas; 68% of which were proved developed and 32% were proved undeveloped.

In the Appalachian Basin, proved reserves increased to 230 Bcfe, which was 20% higher than Atlas Energy's mid-year proved reserves of 191 Bcfe and up 27% compared to year end 2006 proved reserves. This semi-annual result exceeds the Company's historical annual growth rate in Appalachia of approximately 8-10% due largely to the addition of Marcellus Shale reserves and a record drilling program in 2007.

As of December 31, 2007, Atlas Energy's proved reserves in Michigan were 667 Bcfe, which represented a 9% increase since the acquisition of DTE Energy's Antrim Shale assets on June 29, 2007.

The increase in reserve quantities between June 2007 and December 2007 was not materially impacted by increased prices since NYMEX natural gas prices were virtually the same on June 30, 2007 and December 31, 2007, $6.75 and $6.79 per thousand cubic feet (“mcf”), respectively.

Atlas Energy Resources, LLC develops and produces domestic natural gas and to a lesser extent, oil. Atlas Energy is one of the largest independent energy producers in the Appalachian Basin and northern Michigan. The Company sponsors and manages tax-advantaged investment partnerships, in which it co-invests, to finance the exploration and development of the Company's acreage in the Appalachian Basin. Atlas Energy is active principally in Pennsylvania, Michigan and Tennessee. For more information, visit Atlas Energy's website at www.atlasenergyresources.com or contact investor relations at bbegley@atlasamerica.com.

Atlas America, Inc. (NASDAQ: ATLS) owns an approximate 64% limited partner interest in Atlas Pipeline Holdings, L.P. (NYSE: AHD), which holds the general partner interest and 5.5 million limited partner units of Atlas Pipeline Partners, L.P. (NYSE: APL), and an approximate 49% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC. For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at bbegley@atlasamerica.com.

Certain matters discussed within this press release are forward-looking statements. Although ATN believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include natural gas and oil prices, industry conditions, drilling results, uncertainties in estimating reserves, uncertainties in estimating future production, availability of drilling rigs and other services and other factors detailed in reports ATN has filed or may file with the Securities and Exchange Commission.

Contact Information

  • CONTACT:

    Brian J. Begley
    Investor Relations
    Atlas Energy Resources, LLC
    1845 Walnut Street
    Philadelphia, PA 19103
    215/546-5005
    215/553-8455 (fax)