CONSOL and Hess to jointly develop Utica shale in Ohio

PITTSBURGH — CONSOL Energy Inc. announced Oct. 24 it has closed on its previously announced agreement with Hess Corporation to jointly explore and develop CONSOL’s nearly 200,000 Utica Shale acres in Ohio.

In the transaction, Hess Corporation acquired a 50 percent interest in nearly 200,000 Ohio Utica Shale acres owned by CONSOL in consideration for $594 million, of which $60 million was paid at closing.

CONSOL and Hess Corporation have entered into a joint development agreement in which Hess Corporation will pay approximately $534 million in the form of a one-half drilling carry of certain CONSOL working interest obligations as the acreage is developed.

The effective date of the transaction is Aug. 1, 2011.

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