Resource America, Inc. Acquires Energy Assets From Kingston Oil Corporation

Business Wire, Jan 2, 2001

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Jan. 2, 2001

Resource America, Inc. (Nasdaq:REXI)(the "Company") announces that on October 6, 2000, through its wholly owned subsidiary Atlas America, Inc., it executed an agreement to acquire substantially all of the oil and gas producing reserves and mineral rights of Kingston Oil Corporation for $3.7 million.

The Company further announced that Atlas Pipeline Partners, L.P. (AMEX:APL) (the "Partnership"), of which the Company is the General Partner and majority owner, signed a similar agreement to acquire the natural gas gathering system of Kingston Oil Corporation for cash and common units of the Partnership valued at $2.75 million.

Upon recently obtaining all of the necessary consents to the transfer of these assets and upon satisfaction of other conditions, the Company now anticipates closing this transaction on January 5, 2001.

Edward E. Cohen, C.E.O. of Resource America, Inc., stated, "This acquisition demonstrates Resource America's ability to continue to buy at reasonable prices small exploration and production companies with substantial drilling opportunities. We have now further benefited from the fact that, on October 6, 2000, when the agreement was signed, Appalachian spot natural gas prices were substantially lower than in recent days. Further, this transaction will expand Atlas' area of operations and is another step in our strategy to grow through deliberate exploration and development of our mineral leases and through acquisition of additional quality oil and gas assets."

Jeffrey Simmons, Executive Vice President - Operations of Atlas America added, "This acquisition is expected to add approximately 2.2 million and 1.2 million cubic feet of gas equivalent per day, gross and net to our interest, respectively, from more than 240 wells and will give us a long sought foothold in a new area of operations".

Frank Carolas, Executive Vice President - Geology of Atlas America, Inc. further stated, "Kingston's oil and gas production is primarily from the Clinton Formation, as is the majority of Appalachian based production. The characteristics of the Clinton Formation include low risk, long-lived and gradually declining natural gas production, which is highly desirable in the current energy environment. In this transaction, Atlas also acquired more than 70,000 acres of gross mineral rights, which we expect will yield a substantial number of attractive drilling locations for Atlas and its investment programs over the next few years. At this time we have identified 43 drill sites that we intend to drill within the next several months to take advantage of strong natural gas prices."

Statements made in this release may 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.