UPDATE 1-Penn Virginia Resource to buy coal reserves for $97 mln

* To buy reserves in Kentucky, Tennessee

* Acquired reserves primarily steam coal

Dec 15 (Reuters) - Penn Virginia Resource Partners LP (PVR.N) said its unit agreed to buy some mineral rights, including coal reserves in Kentucky and Tennessee, for $97.3 million to expand its Central Appalachian coal reserve base.

The company, which purchased the rights from Begley Properties, said the mineral rights include about 102 million tons of coal reserves and resources.

The acquired coal reserves are primarily steam or thermal coal -- used in power generation -- that is consumed by major electric utilities and other industrial customers in the southeastern United States.

The deal is expected to add to distributable cash flow per common unit within the first year following the closing of the transaction, the company said.

Investments in thermal coal could be significantly beneficial driven by surging demand in Asia, which could offset stagnant demand in Europe and the United States.

Radnor, Pennsylvania-based Penn Virginia's shares closed at $28.26 on Wednesday on the New York Stock Exchange. They have risen nearly 18 percent since the company bought its general partner in September. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Vinu Pilakkott)