HOUSTON, Oct. 30, 2012 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported the acquisition of an overriding royalty interest in frac sand reserves located on approximately 561 acres near Wyeville, Wisconsin for a purchase price of $15.0 million. The acquisition was funded from NRP's credit facility.
The premium Northern White sand reserves are currently being mined, processed, and sold under long-term contracts and will immediately generate income for NRP. The reserves, with an estimated reserve life exceeding 30 years, are strategically located and the production facility has logistics capabilities enabling the facility to serve all major U.S. oil and natural gas producing basins, particularly the Bakken. Frac sand is utilized by oil and gas service companies in the fracturing process during the completion of wells.
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is principally engaged in the business of owning and managing mineral reserve properties. NRP primarily owns coal, aggregate and oil and gas reserves across the United States that generate royalty income for the partnership.
This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements include the estimated life of the reserves. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, decreases in demand for coal; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.