CONSOL sells royalty interest in Antero

Posted September 27, 2011

Patty Tascarella,
Senior Reporter - Pittsburgh Business Times

CONSOL Energy Inc. on Monday said it has sold its royalty interest in Antero Resources Appalachian Corp. in a $193 million cash transaction that closed Sept. 21, 2011.

These royalty interests in 115,647 net acres of Marcellus Shale covered nine counties in southwestern Pennsylvania and north central West Virginia.

The royalty interests were acquired in connection with the acquisition of the Appalachian oil and gas exploration and production business of Dominion Resources Inc. in April 2010.

Canonsburg-based CONSOL (NYSE:CNX) will retain the existing shallow wells and formations and all other leasehold interests on the acreage, including geological formations generally above and below the Marcellus Shale. A 2008 farmout agreement between the parties was terminated and a joint use agreement has been signed regarding ongoing operations.

CONSOL’s financial advisor for this transaction was Stifel, Nicolaus & Co. Inc.; its legal advisor was Akin Gump Strauss Hauer & Feld LLP.