Dec 10, 2013 3 min read

CANONSBURG – Consol Energy Inc. said Tuesday it acquired nearly 90,000 acres of land in northern West Virginia from a division of Dominion Resources with Marcellus Shale and Upper Devonion wet gas potential.

The announcement was included in an update of the energy company’s latest well results that detailed Marcellus Shale well results from several Consol-operated drilling pads in Washington County. The 11 wells on three pads had an average lateral length of 5,300 feet and were completed with some combination of shorter stage lengths, reduced cluster spacing, and other enhanced production techniques.

Initial production from the wells averaged 10.7 million cubic feet per day, and ranged from 5.3 MMcfe to 18.4 MMcfe per day. While estimated ultimate recoveries have yet to be calculated, Southpointe-based Consol said in a news release it believes they should easily approach 2 billion cubic feet per thousand lateral feet. The wells were turned into line quickly after flowing back frack fluids.

Separately, in Barbour County, W.Va., Consol said it recently completed its first pad, the six-well Philippi 13 pad, that employed the same short-stage lengths, reduced cluster spacing, and enhanced production techniques with positive early results.

The company said drillout and flowback activities are ongoing but the first well, PHL 13F which is 8,733 feet in lateral length, recently went into production with a maximum 24-hour flow rate of 13.6 MMcfe per day.

For the company’s 2014 Marcellus Shale program, Consol said it intends to make extensive use of the enhanced completion and production techniques.

In addition to providing well results, Consol said it acquired the gas drilling rights to nearly 90,000 contiguous acres from Dominion Transmission, a unit of Dominion Resources. The majority of the acreage, is associated with Dominion’s gas storage fields in West Virginia, lies in the northern portion of Lewis County and the southern portion of Harrison County. Consol said it anticipates that more than half of the acreage will have wet gas.

The company said it has acquired the gas rights to both the Marcellus Shale and the Upper Devonian formations in the storage fields for up to $190 million, half of which was paid at last week’s closing and the balance due over time as the acres are drilled.

Consol has also committed to be an anchor shipper on Dominion’s transmission system.

“This transaction reinforces Consol Energy’s commitment to being a leading natural gas producer in the Appalachian Basin,” said Chief Executive Officer Brett Harvey. “These parcels represent what could be the largest untapped contiguous acreage in the southern core of the Marcellus Shale. They complement our already significant acreage position in northern West Virginia.”

Noble Energy, Consol Energy’s joint venture partner in the Marcellus Shale, is exercising its right to participate at a 50 percent level in the transaction.