Noble Enters $3.4Bn Shale Gas Venture With Consol

August 18, 2011
Consol Energy, the US coal and gas giant, on Thursday said it would sell a 50% stake in its Marcellus Shale assets in the east of the country for $3.4-billion to oil and gas producer Noble Energy.

The deal is effective July 1, and is expected to close in September.

Consol chairperson and CEO Brett Harvey said that Noble would bring strong technical expertise to the joint venture.

“This agreement will benefit the regional economy, the communities in which we operate, our employees, and our respective companies,” he said.

Noble chairperson and CEO Charles Davidson said his company had been searching for an entry point into the Marcellus shale resources for a long time, and that Consol represented the “perfect partner”.

“Both partners will be contributing their considerable technical and operational expertise to accelerate the development of this important national resource thus creating considerable value for both of our companies as well as the communities we touch,” he commented in a statement.

The joint development plan the two companies are working with envisages a doubling in the amount of drill rigs at Marcelus to eight by next year, and 13 in 2013.

Consol said that the joint venture would keep to the company’s original production targets it made when it bought the Mercelus shale gas assets through its purchase of Dominion in 2009 of 350 Bcf by 2015.

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