CONSOL Energy Inc. has closed on its previously announced agreement with Hess to jointly explore and develop CONSOL's nearly 200,000 Utica Shale acres in Ohio for aggregate consideration to CONSOL of approximately $594 million.

In the transaction, Hess Corp. acquired a 50% interest in nearly 200,000 Ohio Utica Shale acres owned by CONSOL in consideration for $594 million, of which $60 million was paid at closing. CONSOL and Hess Corp. have entered into a joint development agreement pursuant to which Hess Corp. will pay approximately $534 million in the form of a 1/2 drilling carry of certain CONSOL working interest obligations as the acreage is developed. Both the acreage and the consideration are subject to customary adjustment for revenues, expenses, and title matters. The effective date of the transaction is August 1, 2011.

Source:  CONSOL Energy Inc.