Consol Sells Marcellus Shale Interests

Consol Energy Inc. announced Monday that it has sold a portion of its Marcellus Shale interests to Antero Resources Appalachian Corp.

The agreement will include 115,647 net acres of Marcellus Shale located in nine counties in southwestern Pennsylvania and north central West Virginia, in exchange for $193 million.

The all-cash transaction closed on Wednesday, with an effective date of July 1, 2011, according to a release.

These overriding royalty interests were acquired in connection with the acquisition of the Appalachian oil and gas exploration and production business of Dominion Resources Inc. in April 2010, and were previously reserved by Dominion when the working interests and operating rights in the Marcellus Shale were conveyed from Dominion to Antero in 2008.

This asset was excluded from the Consol Energy/Noble Energy joint venture announced in August, so the cash proceeds accrue entirely to Consol Energy and its shareholders.

Consol will retain the existing shallow wells and formations and all other leasehold interests on the acreage, including geological formations generally above and below the Marcellus Shale.

The 2008 farm out agreement between the parties was terminated and a joint use agreement has been signed regarding ongoing operations.