SOURCE: Atlas Pipeline Partners, L.P.

October 10, 2006 13:15 ET

Atlas Pipeline Partners, L.P. Announces Update to Atlas America, Inc.'s Hedge Position

PHILADELPHIA, PA -- (MARKET WIRE) -- October 10, 2006 -- Atlas Pipeline Partners, L.P. (NYSE: APL) (the "Partnership") announces an update to Atlas America, Inc.'s (NASDAQ: ATLS) (the "Company") hedge positions for natural gas that the Company produces in the Appalachia region. These new hedging contracts cover future production for the fourth quarter of 2006 through the end of 2009. A summary of the Company's current hedge position is as follows:

Production            Hedged            Average
Period Ended          Volume         Fixed Price(b)      Percentage
December 31,    (mcf equivalent)(a)    (per mcf)          Hedged(c)
------------     -----------------   --------------      ----------
2006                 1,511,594       $         9.28          65%
2007                 7,441,765       $         9.86          81%
2008                 7,017,359       $        10.09          76%
2009                 6,101,648       $         9.72          66%


(a)  In thousand cubic feet ("mcf").
(b)  Includes an estimated positive basis differential and Btu
     adjustment.
(c)  Based upon natural gas production volume for the second quarter
     of 2006.
Atlas Pipeline Partners, L.P. is active in the transmission, gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, Arkansas, northern Texas and the Texas panhandle, the Partnership owns and operates approximately 2,565 miles of intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. The Partnership also operates two gas processing plants and a treating facility in Velma, Elk City and Prentiss, Oklahoma where natural gas liquids and impurities are removed. In Appalachia, it owns and operates approximately 1,500 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio. For more information, visit our website at www.atlaspipelinepartners.com or contact bbegley@atlaspipelinepartners.com.

Atlas America, Inc. is an energy company engaged primarily in the development and production of natural gas in the Appalachian Basin for its own account and for its investors through the offering of tax advantaged investment programs. Atlas America also owns an 83% interest in Atlas Pipeline Holdings, L.P., which owns a 2% general partner interest, 1,641,026 common units and all the incentive distribution rights in Atlas Pipeline Partners, L.P. For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at bbegley@atlasamerica.com.

The Partnership's actual results, performance or achievements could differ materially from those expressed or implied in this release as a result of certain factors, including the price of gas in the Mid-Continent area, actual versus projected volumetric production from wells in the area to be served by the new plant, the NGL content of the natural gas processed and other factors disclosed under "Risk Factors" in our most recent 10-K.

Contact Information

  • Contact:
    Brian Begley
    Investor Relations
    1845 Walnut Street - Suite 1000
    Philadelphia, PA 19103
    (215) 546-5005
    (215) 561-5692 (facsimile)