CNX Gas Corp., Pittsburgh, (NYSE: CXG) plans to acquire the gas interests, including coal gas, on more than 1 million gross acres from Peabody Energy Corp., St. Louis, (NYSE: BTU) in a deal valued at $66.5 million in assets and cash. CNX will first acquire certain coal assets from Consol Energy Inc., Pittsburgh, (NYSE: CNX) for $45 million cash, plus a future payment valued at approximately $6.5 million. CNX will then convey those coal assets plus $15 million cash to Peabody for Peabody's coal gas and other gas rights on 654,000 acres in the Illinois Basin, 153,000 acres in northern Appalachia, 171,000 acres in the San Juan Basin, 47,000 acres in the Powder River Basin, and 11,000 acres in the Rockies. There are no proved gas reserves on the assets, but CNX believes that 114,500 acres in the New Albany shale of the Illinois Basin contains at least net unproved reserves of 258 billion cubic feet of gas. If so the company's total proved and net unproved reserves may grow from 3.1 trillion cubic feet to 3.7 trillion, an 18% increase.
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