UPDATE 1-Penn Virginia Resource to buy gas pipeline

* Facilities to be bought from Atlas Pipeline Partners

* Deal to be add to cash flow immediately

* Facility will continue to be operated by Atlas

July 13 (Reuters) - Penn Virginia Resource Partners LP (PVR.N) said it will buy gas processing and residue pipeline facilities from Atlas Pipeline Partners LP (APL.N) for about $22.6 million in cash.

Penn Virginia said it borrowed funds from its revolving credit facility for the deal, which is expected to add to its distributable cash flow immediately.

The acquired assets consist of a 60 million cubic feet- per-day processing plant within Atlas' larger Sweetwater facility in Oklahoma.

Atlas will continue to operate the facilities, and has also signed a deal to gather and transport gas to the facility for Penn Virginia.

The proceeds of the transaction will be used to reduce outstanding debt, Atlas said in a separate statement.

Shares of Penn Virginia closed at $13.36 Monday on the New York Sock Exchange. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Unnikrishnan Nair)