Consol says its gas production growth is accelerating

Consol says its gas production growth is accelerating

Consol Energy said today that it produced 17 percent more natural gas in the third quarter of this year than it did during the same period in 2012.

Consol, which operates both a coal and gas division, said it produced 46.1 billion cubic feet equivalent — a measure used to describe the equivalent amount of energy released by the burning of natural gas versus crude oil — in the third quarter, up from 39.5 Bcfe in 2012.

Consol’s third quarter production included 491 million cubic feet per day of natural gas, 397 barrels per day of oil and condensates and 1,340 barrels per day of natural gas liquids across its acreage in the Marcellus and Utica Shale plays.

The information was provided in an operational update as the company prepares to report third quarter earnings at the end of this month.

Consol’s third quarter report also will come amid wide-spread news media reports that the Canonsburg, Pa.-based company is considering breaking up its coal and gas assets, as it focuses more intently on the latter. Last week, Consol issued a statement saying it was evaluating its corporate structure.

“Our gas production growth is beginning to accelerate as we and our Marcellus Shale partner expand the rig count. We now have a record 8 rigs drilling in the Marcellus Shale on [joint venture] acreage,” said Brett Harvey, chairman and chief executive officer.

The company has joint ventures, or partnerships, with Noble Energy in Pennsylvania and Hess Corp. in Ohio.

During the third quarter, Consol drilled three wells in Noble County, while Hess drilled two wells in Guernsey County.

The company also entered into an agreement with Blue Racer Midstream to construct, own and operate gathering pipelines and facilities to support production efforts with Hess. Consol said the infrastructure would greatly help move its product from drilling sites in Noble County.