The acquisition will give CONSOL Energy a leading position in the strategic Marcellus Shale fairway by tripling its development assets to approximately 750,000 acres with the addition of Dominion’s approximately 500,000 Marcellus Shale acres in Pennsylvania and West Virginia. The acquisition increases CONSOL Energy’s total proved gas reserves by more than 50% from 1.9 trillion cubic feet to approximately 3 trillion cubic feet and doubles its potential gas resource base to approximately 41 trillion cubic feet.
“Since 2005, CONSOL Energy will have doubled its annual gas production to 100 Bcf in 2010,” said Brett Harvey, CONSOL Energy president and CEO. “This acquisition will further accelerate that trend.”
CONSOL Energy will acquire a total of 1.46 million oil and gas acres from Dominion along with over 9,000 producing wells that are expected to produce more than 41 Bcfe in 2010, approximately 27 Bcfe of which will be imputed to CONSOL Energy between May 1, 2010, and the end of the year assuming an April 30, 2010, closing. Upon completion of the transaction, CONSOL Energy’s natural gas business is expected to account for as much as 35% of CONSOL Energy’s total revenue.