Coal producer Consol Energy Inc., Pittsburgh, (NYSE: CNX) has completed the acquisition of its E&P subsidiary CNX Gas Corp. (NYSE: CXG) for approximately $363 million, expanding the company’s gas footprint in Appalachia.

The acquired assets include primarily coalbed-methane interests in the Appalachian and Illinois basins in Pennsylvania, West Virginia and Virginia. CNX Gas had 1.9 trillion cu. ft. equivalent of net proved reserves as of year-end 2009.

Consol will pay $38.25 in cash per CNX share for approximately 9.5 million shares, representing a 24% premium based on the closing price of CNX Gas on March 19, and a 46% premium based on the closing price of CNX Gas on March 12, the last trading day before Consol announced it was purchasing the Appalachian E&P business of Richmond, Virginia-based Dominion Resources Inc. (NYSE: D) for roughly $3.5 billion in cash.

Consol is funding the acquisition with cash on hand, debt and equity offerings. CNX Gas common stock will no longer trade on the New York Stock Exchange.

• Walter Natural Gas LLC, the E&P subsidiary of coal producer Walter Energy Inc., Tampa, Fla., (NYSE: WLT), has acquired the Alabama Black Warrior Basin gas interests of Houston-based HighMount Exploration and Production LLC for approximately $210 million in cash.

The acquired assets comprise HighMount’s Alabama coalbed-methane operations, including approximately 1,300 conventional gas wells, pipeline infrastructure and related equipment near Walter’s existing underground mining and CBM business in Tuscaloosa County.

HighMount held some 506,000 gross acres (335,000 net; 254,000 net undeveloped) in the Black Warrior Basin as of year-end 2009. Current proved reserves are approximately 190 billion cu. ft., and annual production is 8.5 billion. The purchase price equated to $1.10 per thousand cu. ft. of proved reserves. Approximately 47 HighMount Alabama employees have accepted offers to remain with the company.

HighMount is a subsidiary of Loews Corp. (NYSE: L). Walter has revenues of approximately $1 billion. Raymond James & Associates and RBC Richardson Barr were advisors to Walter and HighMount, respectively.

• Sinochem Group and Statoil ASA (NYSE: STO) have signed a memorandum of understanding (MOU) to further explore global opportunities as joint-venture partners.

The MOU follows the Chinese state-run company’s recent purchase of a 40% interest in Peregrino Field, offshore Brazil, from the Norwegian E&P for approximately US$3.1 billion in cash.

Statoil also notes that the companies’ recent A&D transaction “confirms the high-quality of the Peregrino asset, reflecting Statoil’s value added through the field development.”

Statoil will retain 60% of a previously 100% ownership stake and will continue to operate Peregrino, slated to come online in early 2011. The Norwegian oil major will also reduce its equity production guidance for 2012 by 40,000 bbl. of oil equivalent per day to approximately 2.1 million to 2.16 million bbl. of oil equivalent per day.

Peregrino is on BM-C-7 and BM-C-47 blocks in the Campos Basin, approximately 53 miles off the coast of Brazil, in close to 330 feet of water. The shallow-water field has estimated recoverable reserves ranging from 300- to 600 million bbl. of oil.

Statoil acquired a 50% interest in the Peregrino discovery in 2005; the remaining 50%, along with operatorship, was acquired in 2008.

Statoil has oil and gas operations in 40 countries. Equity production in 2009 was approximately 2 million BOE per day. The company has booked oil and gas reserves of 5.4 bbl. barrels.

• Penn Virginia Corp., Radnor, Pa., (NYSE: PVA) completed the sale of its limited partner interests in Penn Virginia GP Holdings LP (NYSE: PVG).

Since September 2009, Penn Virginia has sold approximately 30.1 million common units, representing 77% of the partnership, and has raised approximately $450 million before taxes. On June 7, the company announced the closing of its public offering of about 8.8 million common units, representing its remaining limited partner interests.

Currently, Penn Virginia has $376 million of cash and a $300-million revolving credit facility, with a $420-million borrowing base. The company’s current debt is $530 million, of which $230 million is due in December 2012 and $300 million in June 2016.

The company expects to incur $3.5 million of nonrecurring general and administrative costs from the sale of its limited partner interests during second-quarter 2010.

James Dearlove, Penn Virginia president and chief executive, says, “The divestiture of PVA’s holdings in PVG completes the process of transforming PVA into a pure-play E&P company. We believe our emerging presence in several key plays, including the Granite Wash, Marcellus shale and Lower Bossier (Haynesville) shale, coupled with our strong balance sheet and liquidity, position us for meaningful growth over the next several years.”

Separately, Penn Virginia purchased approximately 10,000 net acres in the Marcellus shale from two undisclosed private oil and gas firms for $19.5 million in cash and overriding royalty interests, expanding its leasehold to 45,000 net acres.

The first package, acquired from a previous joint-venture partner, includes assets primarily in Potter, Somerset and Tioga counties and comprising 7,900 net acres with Marcellus rights and 23,000 net acres with deeper rights. The seller will take a 1.5% overriding royalty interest in the properties. Penn Virginia will retain an 84% revenue interest. The second package includes leases primarily in Potter County, consisting of Marcellus shale and other formation rights in 2,100 net acres. Penn Virginia plans to test the acreage in late 2010.

• Oklahoma City-based E&P company Devon Energy Corp., (NYSE: DVN) completed the sale of its Gulf of Mexico shelf assets to Houston-based Apache Corp. (NYSE: APA) for $1.05 billion ($840 million after taxes).

Devon and Apache have valued the deal at $16.76 BOE proved and $241 per acre. Apache estimated net proved and probable reserves of 83 million BOE (41 million bbl. proved (49% oil) at year-end 2009. Devon estimated proved reserves of 144 billion cu. ft. and 15 million bbl. of liquids as of Dec. 31, 2009.The seller produced some 62 million cu. ft. of gas and 9,000 bbl. of liquids per day from the Gulf of Mexico shelf in 2009. Apache’s acquired properties are expected to produce 9,500 bbl. of liquids and 55 million cu. ft. per day net (19,000 bbl. equivalent) following closing. Some 72% of revenues are from liquids. Roughly half of the estimated proved reserves of 41 million bbl. equivalent are oil and gas liquids.

• Midland, Texas-based limited partnership Legacy Reserves (Nasdaq: LGCY) has closed acquisitions of Permian Basin oil and gas properties in three transactions totaling $9.2 million.

The operated assets produce approximately 179 BOE per day (84% oil and gas liquids). Proved reserves are 869,000 bbl. equivalent.

In April, Legacy announced plans to acquire Permian Basin assets from Brigham Exploration Co., Austin, Texas, (Nasdaq: BEXP) in a deal valued at $14 million. The properties, more than 75% of which are operated, are in Dawson, Howard, Midland and Stone­wall counties and contain some 602,000 bbl. equivalent in proved developed producing reserves. Production averaged 213 bbl. equivalent per day (90% oil) as of Dec. 31, 2009. Closing was slated for April 31.