GENEVA, Switzerland, October 7, 2011 /PRNewswire/ --
Mercuria Energy Group Holdings SA, a wholly owned subsidiary of Mercuria Energy Group Ltd. ("Mercuria"), announces a recent financing transaction and partnership with US coal producer Bowie Resources LLC ("Bowie").
Mercuria Energy Group Holdings SA has replaced the prior primary senior lender to Bowie and has also provided Bowie with additional sources of funding. Other subsidiaries of Mercuria have acquired warrants in Bowie and are providing marketing and risk management services focused on bringing Bowie significant opportunities to optimize its current and future sales.
The transaction comes shortly after the re-start of longwall operations at the Bowie No. 2 Mine in Delta County, Colorado in June, concluding nearly three years of new development. From 2000 through 2007, Bowie produced an average of 5 million tons per year of super compliance (12,000 Btu - 0.5% sulfur) bituminous coal. Bowie's current recoverable reserve base is estimated at 40 million tons and the company has a new drilling program underway to further define and quantify additional potential reserves.
About Mercuria Energy Group Limited:
Mercuria is a privately-owned international group of companies active over a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas (including LNG), power, coal, biodiesel, vegetable oils and carbon emissions. It is one of the world's five largest independent energy traders and has a long standing sector expertise. In addition to its trading core, Mercuria has upstream and downstream assets ranging from oil reserves in Argentina, Canada and the US, to oil and products terminals in Europe and China, as well as substantial investment in the coal mining and bio fuels industries.
About Bowie Resources:
Bowie Resources is a wholly owned subsidiary of Cedars Energy, LLC, a privately held energy investment company. Bowie began commercial coal production in 1997 and commenced longwall operations in 2000. During normal longwall operations, Bowie consistently ranked as one of the top five most productive longwall operations in the US, and anticipates producing at the 5 million ton per year level for the next 8 - 10 years. Bowie has a unit train loadout facility and coal washing plant at its mine complex in Paonia, Colorado. Bowie currently has $850 million of revenue remaining under long term contracts with favorable pricing and terms. Bowie's "super compliance coal quality" has rendered it a superior blending agent for other regional coals for domestic consumption as well as for export.
SOURCE Mercuria Energy Trading S.A.