CNX Gas

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Address
5 Penn Center West
Suite 401
Pittsburgh, PA 15276-0102
U.S.A.
Tel 412-200-6730
Fax 412-200-6761
Web http://www.cnxgas.com

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Capex

CNX Gas Corporation set 2007 Capital Expenditures at $312 million. This represents an 84% increase from the $170 million in expected capital spending for 2006. CNX Gas will have two development and two exploration plays in 2007. The drilling, processing, and gathering capital for Virginia Operations, a coalbed methane (CBM) play in Central Appalachia, will be $148 million; Mountaineer, a CBM play in Northern Appalachia, will be $84 million; Nittany, an exploration CBM play in central Pennsylvania, will be $6 million; and Cardinal, an exploration New Albany shale play in western Kentucky, will be $12 million. An additional $32 million has been budgeted for a more aggressive land effort. Much of the remaining $30 million, aside from $9 million for Knox Energy in Tennessee, will be devoted to initial exploration work as other plays are assessed. CNX Gas expects to drill 278 development wells in Virginia, 57 development wells in Mountaineer, eight exploration wells in Nittany, and three exploration wells in Cardinal, for a total of 346 in its four major active areas. CNX Gas holds a 100% working interest in these areas. Other areas could see as many as 55 net wells, for a company total of 401 wells. Virginia Operations will also perform 30 recompletions. The drilling of all of these wells, and the recompletions, is expected to cost $160 million. Gathering and processing capital is estimated at $106 million, which includes $12 million for the Bull Creek gathering system in Virginia, a 13.5-mile line that will allow for the collection of gas from the western portion of the Oakwood and Middle Ridge fields, as well as third- party production. Company production is expected to be 64 billion cubic feet (Bcf) in 2007, and at least 15% higher in both 2008 and 2009.

Future Plans

CNX Gas expects to drill 278 development wells in Virginia, 57 development wells in Mountaineer, eight exploration wells in Nittany, and three exploration wells in Cardinal, for a total of 346 in its four major active areas. CNX Gas holds a 100% working interest in these areas. Other areas could see as many as 55 net wells, for a company total of 401 wells. Virginia Operations will also perform 30 recompletions.

Production

CNX Gas replaced 340% of its 2006 production of 56.1 Bcf, making it one of the largest gas producers in the Appalachian Basin.

Reserves

The company's proved reserves as of December 31, 2006 totaled 1,265 billion cubic feet (Bcf), an increase of 135 Bcf, or 11.9 percent, compared with the 1,130 billion cubic feet of proved reserves as of December 31, 2005. During the year, 89 Bcf of reserves were added from the drilling program, while 102 Bcf consisted of upward revisions. There were no proved reserve acquisitions or dispositions during the year. The proved reserve base of 1,265 Bcf consists of 611 Bcf of proved developed reserves and 654 Bcf of proved undeveloped reserves. The proved developed reserves include 573 Bcf of proved developed producing reserves. The latest report also assumes that the proved undeveloped reserves can be developed at a constant cost of $0.84 per Mcf, which includes gathering and compression capital. Geographically, the majority of proved reserves, 1,221 Bcf, are associated with CNX Gas Virginia coal bed methane operations. An additional 33 Bcf of reserves are associated with Mountaineer coalbed methane operations.

Who's Who

James E. Altmeyer, Sr.
Director
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Philip W. Baxter
Chairman of the Board
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Raj K. Gupta
Director
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J. Brett Harvey
Director
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William J. Lyons
Director
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John R. Pipski
Director
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Joseph T. Williams
Director
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Nicholas J. DeIuliis
Chief Executive Officer, President and Director
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Stephen W. Johnson
Executive Vice President and General Counsel
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Mark D. Gibbons
Senior Vice President and Chief Financial Officer
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Randall M. Albert
Senior Vice President - Emerging Business Units.
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Dr. DeAnn Craig
Senior Vice President - Asset Assessment
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J. Michael Onifer
Senior Vice President - Established Business Units
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