Coal and natural gas producer Consol Energy Inc., Pittsburgh, (NYSE: CNX) reports that its Gas Division achieved record quarterly production of 35.8 billion cubic feet (Bcf) for the quarter ended Sept. 30. This was 44% higher than the 24.8 Bcf produced in last year's September quarter, and 12% higher than the 31.9 Bcf produced in the quarter ended June 30.

The Gas Division began the quarter with one horizontal rig running in Greene County, Pennsylvania, and ended the quarter with three horizontal rigs operating in the play. The original horizontal rig left its base in Greene County, in order to drill in nearby Belmont County, Ohio. Beginning at a depth of 8,450 feet, the rig encountered 200 feet of Utica shale. The vertical well, un-stimulated, flowed 1.5 million cubic feet of gas (MMcf) in a 24-hour period.

Consol Energy has more than 70,000 acres in and around the discovery well in Belmont County. "While most of our delineation efforts are focused on the Marcellus shale," says J. Brett Harvey, chairman and chief executive, "our vast acreage holdings include other zones that warrant testing, including the Utica shale. As a result of this discovery, we will shift some of our exploration capital to this shale in 2011."

Consol has coal and natural gas assets in the Appalachian Basin.