Virginia
Consol Energy Inc., Pittsburgh, hiked its gas production in the quarter ended Sept. 30, and it expects another increase in the fourth quarter.
Reporting that it averaged 137 MMcfd, mostly from coal beds in Southwest Virginia, the company said it has the ability to "grow the gas business for a number of years at very low risk."
Consol signed an agreement in late July with Triana Energy Inc., Charleston, W.Va., to jointly explore for and produce gas on 138,000 acres in Southwest Virginia.
Consol said the agreement represents "a unique opportunity to exploit synergies between our established coalbed methane operations in southwest Virginia and the conventional gas resource below it."
Consol produces CBM from the Pocahontas No. 3 and associated coal seams. The agreement covers conventional gas that may reside in deeper formations. Consol is operator, and Triana will be responsible for geological evaluation, drilling, and completion of all wells.
Triana acquired Columbia Natural Resources Inc. from NiSource Inc. this year, making it one of the Appalachian basin's largest production companies.