Atlas Targets 13 Tcfe of Reserves in Marcellus Shale

Atlas Energy has identified over 3,150 horizontal Marcellus Shale drilling locations on its acreage and estimates that the incremental net recoverable reserves from these locations are 13 trillion cubic feet equivalents ("Tcfe"). These figures assume 1,000 foot spacing between lateral well bores. Down spacing could result in additional horizontal locations and reserve potential. The Company’s reserve report includes 73 Marcellus Shale horizontal locations as proved undeveloped.

Atlas also announced that its year end 2009 proved reserves totaled 1.02 Tcfe, driven by 34% growth in Appalachia reserves, reflecting the Company’s continued development of its acreage position in the Marcellus Shale in southwestern Pennsylvania. Approximately 52% of the Company’s proved reserves were proved developed and approximately 99% were natural gas.

During 2009, Atlas replaced over 850% of its production through the drill bit. Finding and development costs, including all revisions, were $1.21 per thousand cubic feet of natural gas equivalent ("mcfe"). Excluding all revisions, finding and development costs were $0.34 per mcfe. Atlas incurred total capital costs of approximately $109 million drilling and completing wells in 2009, which was comprised of its own investments in drilling partnerships it sponsored as well as the cost of wells drilled directly for its own account. After deducting from capital costs the margin from upfront fees that Atlas receives from the sponsorship of its drilling partnerships, adjusted finding and development costs were approximately $0.40 per mcfe, and just $0.11 per mcfe excluding all revisions. The Company’s reserves-to-production ratio ("R/P Ratio") is 27.7 years; indicating the long-lived nature of the Company’s reserves.

Edward E. Cohen, Chairman and CEO of Atlas Energy, stated, "Our year end proved reserves reflect the success of our Marcellus Shale development-albeit limited by having funded almost all of our Marcellus Shale drilling in 2009 through our drilling partnerships, which served to limit our capital investment, but also limited the growth of our reserves. Now in 2010, having improved our cash flow through our transformation from a master limited partnership making large distributions into an operating entity reinvesting our cash flow in operations, we intend to grow our reserves and cash flow at an increased rate by drilling most horizontal Marcellus Shale wells for our own account."



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