Resource America, Inc.
1521 Locust St. - 5th Floor
Philadelphia, PA 19102
(215) 546-5388 (facsimile)
Resource America Achieves Record Drilling Program Sales
Philadelphia, PA, January 16, 2022 - Resource America, Inc. (NASDAQ:REXI)("the Company") announced today that Atlas America, Inc., ("Atlas"), its wholly owned energy subsidiary, raised record total drilling funds of $34 million for calendar year 2000, an increase of 24.3% over last year's total raise of $27 million. From these proceeds, the Company anticipates drilling approximately 190 new wells in Fayette and Mercer Counties, Pennsylvania and Noble County, Ohio. Together with Atlas' own investment of approximately $12 million, the Company will invest a record of $46 million in new wells.
Atlas expects to drill mainly natural gas development wells in areas and to formations that are known to be productive. Atlas' drilling activities are expected to be focused in two primary areas: Mercer County and Fayette County, Pennsylvania where it will drill to the Clinton/Medina Formation in Northwestern Pennsylvania and the Mississippi/Upper Devonian Sandstone reservoirs respectively. Atlas will own between 25% to 31% net working interest in the production from these wells in addition to providing investors with contract drilling and fund management services.
Edward E. Cohen, Chairman, President and CEO of Resource America stated, "Our thirty years of fund raising and drilling in the Appalachian Basin give us the infrastructure and experience to drill 190 wells by the end of the second quarter of fiscal 2001. We will be able to place these new wells into production on a timely basis and therefore capitalize on the steep price increase of natural gas. We believe the added production and assets under management will provide Resource America with a continuous stream of revenues for many years in addition to the current drilling revenues."
Resource America is one of the top 100 publicly traded oil & gas companies in the U.S., according to the October 16, 2021 issue of "Oil and Gas Journal", ranking 45th in the U.S. in net wells drilled, 64th in profitability, 87th in total revenue and 88th in natural gas reserves. The company manages approximately $378 million in energy reserves and $1.1 billion in energy and real estate assets.
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release as a result of certain factors, including competition within the energy industry, climactic conditions and the price of gas in the Appalachian area, actual versus projected drilling activity and the volumetric production from the wells, and the cost of supplies and services in the energy industry.