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Officials with Energy
Corporation of America (the "Company") announced today that the
Company has commenced an offer to exchange (the "Offer")
approximately 4.1 million common units of ECA Marcellus Trust I
ECT
that it currently owns, for up to approximately 3.2 million
Depositary Units of Eastern American Natural Gas Trust
NGT. A leading
private exploration and production company, Energy Corporation of
America is offering each holder of NGT Depositary Units a number of
ECT Common Units valued at $22.55 for each NGT Depositary Unit
tendered, representing a 7.6% premium to the approximately $20.95
that will be paid to NGT Depositary Unitholders following the
liquidation of NGT. The $20.95 consists of the value of the Treasury
Obligation at maturity plus the per unit share of the proceeds
attributable to the sale of the perpetual net profits interest. NGT
begins to liquidate and wind down on May 15, 2013. The Offer will
remain open until March 13, 2013 at 11:59 PM New York City time, unless extended.
NGT Depositary Unitholders participating in the Offer will receive
ECT Common Units valued at a 7.6% premium to the estimated cash value
of the distributions to be made to NGT Depositary Unitholders
following liquidation and will acquire ECT Common Units thereby
allowing such NGT Depositary Unitholders to continue the benefit of
quarterly cash distributions as long as such holders continue to own
ECT Common Units or until ECT terminates in 2030.
The final exchange ratio will be determined based on the volume
weighted average trading prices of ECT Common Units for the 10-day
period ending on the 18th business day following commencement of the
Offer (or two business days prior to the expiration of the Offer if
the Offer is extended beyond the initial 20 business day offer
period).
Upon the closing of trading on the New York Stock Exchange on the exchange ratio determination date, the Company will announce in a
press release the final exchange ratio. At any time in which the
Offer is open prior to such date, NGT Depositary Unitholders may
contact D.F. King & Co., Inc., the information agent for the Offer,
to inquire what the exchange ratio would be if determined as of that
date
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