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Permalink Reply by farmgas on July 30, 2013 at 5:39am

Anyone know where Consol will focus their drilling attention next?

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Permalink Reply by lettijack on July 30, 2013 at 10:10am

According to DEP, Consol has 8 wells under permit for Westmoreland county in washington township and a few laterals under permit in Indiana county.  (I didnt check the data for any other counties). 

I would venture they will continue the drilling program in the Mamont field because they have the infrastructure in place and plenty of HBP land there to keep cost down.   Dont know about the situation out at the airport.

 

Regards,

 

 

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Permalink Reply by 015334grltd9m on July 30, 2013 at 1:27pm

Now I understand why they pulled out of Mahoning and Trumbull counties, Ohio.

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Permalink Reply by 0i7okn54zwbdo on July 30, 2013 at 4:00pm

Remember, CNX has a lot of legacy mineral rights in the core area of the Utica and can drill wells on property that gives them nearly 100% NRI.  That's my guess as to where their production is headed.  

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Permalink Reply by shadyvista on July 31, 2013 at 2:52am

Does this make them vulnerable to buyout/merger?

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Permalink Reply by 0i7okn54zwbdo on July 31, 2013 at 3:04am

I think they're too big for a buyout.  Who wants to buy--at a premium--what is essentially a company using a fuel source that is the target of the president and his various federal agencies?  The war on coal has been raging since Obama took office and no smart money manager would bet his reputation on a LBO of CNX.  

As for a merger, well there's probably no dance partner out there.  Who'd do it?  Duke?  Peabody? The FTC would never allow coal company mergers because, as previously mentioned, this administration hates coal.  No, CNX has to go it alone and hope that their JV with Hess in the Utica can produce some decent cash flow.

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