CONSOL, Hess to explore and develop Utica Shale in Ohio

CONSOL Energy has entered an agreement with Hess Corporation for the joint exploration and development of CONSOL Energy’s 809km² Utica Shale play in Ohio, US.

Hess will pay a total aggregate consideration of $593m for an undivided 50% of CONSOL’s fee and leased mineral interests in the Utica Shale acres.

Both firms will also enter a joint development agreement after Hess has agreed to pay 50% of CONSOL Energy’s working interest obligations relating to drilling and completion costs of $534m as the acreage is developed.

The joint venture will allow CONSOL Energy to explore and delineate its Ohio Utica Shale acreage for 25¢ on the dollar, while retaining a 50% interest.