CNX Gas Corp said Friday it will lease 20,000 acres in Southwestern Pennsylvania from a subsidiary of Massey Energy Co., with the two companies jointly developing the property while working toward an operating agreement.

According to a news release issued by both companies, CNX Gas will be the operator and majority working interest partner.

The project is focused on coalbed methane in the Freeport seam in Westmoreland and Fayette counties. This acreage is in close proximity to CNX Gas' Mountaineer and Nittany plays.

The companies said there are no proved coalbed methane reserves associated with this acreage.

Nicholas J. DeIuliis, president and chief executive officer of CNX Gas, said the project represents the first "step-out opportunity" for CNX Gas.

"Up until now, CNX Gas has only drilled for coalbed methane on acreage owned or leased by its majority owner," DeIuliis said. "Massey recognizes our improving ability to drill horizontal coalbed methane wells in Northern Appalachia. If we can bring value to these coal assets, this can serve as a model for other coal companies looking to improve shareholder value."

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