Consol to stress gas output growth, sell five coal mines

Consol Energy Inc., Pittsburgh, will emphasize Appalachian natural gas production growth and has arranged the $3.5 billion sale to a unit of Murray Energy Corp. of its Consolidation Coal Co. subsidiary that operates five longwall steam coal mines in West Virginia.

Consol termed the five mines, which produced a combined 28.5 million tons of thermal coal in 2012 and have 1.1 billion tons of Pittsburgh No. 8 seam reserves, as a nongrowth industry due to tightening US environmental regulations. Nevertheless, it retains low-cost coal mines in Pennsylvania, Virginia, and West Virginia. The sale, to close by yearend, includes 21 towboats and 600 barges.

Consol has set a 2014 gas production guidance range of 210-225 bcf of gas equivalent, 7-8% liquids or condensates, a 22-30% hike from expected 2013 output. The company said the sale enabled it to extend its gas production targets beyond 2014. For 2015 and 2016, the company expects gas production growth of 30%/year.

Consol said its gas division produced 46.1 bcfe in the quarter ended Sept. 30, 17% more than in the 2012 third quarter. Third-quarter 2013 output was 491 MMcfd of gas, 397 b/d of oil and condensate, and 1,340 b/d of natural gas liquids.

Consol and partner Noble Energy Inc. are running a record eight rigs in the Marcellus shale and expected to operate at least that many in 2014. Consol drilled 12 horizontal Marcellus shale wells and three Utica shale wells in the most recent quarter. Laterals averaged 8,817 ft in the Marcellus and 9,893 ft in the Utica.

In Washington County, Pa., the most notable Marcellus well, NV 38C, had an initial production rate of 19 MMcfd. Four wells on the NV 38 pad, including NV 38C, were completed using shorter stage length completion techniques.

Consol’s first Upper Devonian well, NV 39F, which was drilled in the Burkett shale and turned in line in June at 3 MMcfd, has exhibited a nearly flat decline rate and was still producing 2.9 MMcfd as of Sept. 30. The two Marcellus shale wells underlying NV 39F are producing at or above projections.

The company plans to drill more Burkett shale wells and to further test Upper Devonian wells in the Rhinestreet shale formation from Marcellus pads in 2014.

The company noted that it has a sizable Marcellus shale footprint in West Virginia, where its partner Noble Energy expects to have drilled 75 wells in 2013.

Consol operated three wells in the quarter on the NBL 19 pad in Noble County, Ohio, with laterals of 9,396-10,360 ft in its Utica shale joint venture with Hess Corp., completing a nine-well 2013 program. Hess operated two wells in Guernsey County in the quarter and is running two horizontal rigs on JV acreage.

Related Articles

Frac ban exemption made in Broomfield

12/12/2014 A Colorado District Court judge has ruled that a hydraulic fracturing ban in Broomfield, Colo., does not apply to an operator that entered into an ...

COGA calls frac fluid study "sound science"

12/12/2014 Chemicals used in fracturing fluid appear to be no more toxic than chemicals commonly found in homes, said an analysis by University of Colorado Bo...

Study links methane contamination in water wells to poor well construction-not fracing-in Marcellus

12/12/2014 A new study found that fugitive gas contamination at eight clusters of water wells in the Marcellus and Barnett shale regions might be linked to we...

WoodMac: US unconventional enters new stage

12/12/2014 The unconventional oil and gas revolution is entering into a new stage with drilling and completion techniques pioneered in unconventional plays no...

Santos makes gas discovery in Cooper basin

12/12/2014

Santos Ltd. has made a wet natural gas discovery in its South Australian Cooper basin permit PEL 513.

Senex moves to commercialize Cooper basin gas field

12/11/2014 Senex Energy Ltd., Brisbane, has successfully tested a sidetrack of the 2007 Vanessa-1 gas discovery in South Australia’s Cooper basin as part of i...

Crown Point reports on two Argentine exploration wells

12/11/2014 Crown Point Energy Inc., Calgary, has released test results for the first of two exploration wells at its Tierra del Fuego concessions in Argentina.

Stone drills successful Utica exploration well

12/10/2014 Stone Energy Corp., Lafayette, La., reported that its Pribble 6HU well in Wetzel County, W.Va., flowed from a 3,605-ft lateral at 30 MMcfd during t...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected