CNX Gas Reports Proved Reserves Increase from 1.4 Tcf to 1.9 Tcf; 2009 Drill Bit Finding Cost of $0.39 per Mcf; +400% of Production Replaced; Total 3P Reserves Increase from 2.7 Tcf to 6.5 Tcf

PITTSBURGH, Jan. 25 /PRNewswire-FirstCall/ -- CNX Gas Corporation (NYSE: CXG), a leading Appalachian producer, has proved reserves of 1.9 trillion cubic feet (Tcf) as of December 31, 2009. This is an increase of 0.5 Tcf, or 34%, from the 1.4 Tcf reported at year-end 2008. The proved developed reserves (PDP) and the proved undeveloped reserves (PUD) both increased between 33-34%.

CNX Gas invested $159.2 million in drilling capital in 2009. This yielded extensions and discoveries of 406.8 Bcf, resulting in a drill bit finding cost of $0.39 per Mcf. The net impacts of revisions, including pricing, and production yielded another 82.6 Bcf, meaning that the total net change in reserves was 489.4 Bcf. The 406.8 Bcf from extensions and discoveries which were booked during 2009, when divided by 2009 production, means that the company replaced over 400% of its 2009 production.

Total proved, probable, and possible reserves (also known as "3P reserves") were 6.5 Tcf as of December 31, 2009. This is an increase of 3.8 Tcf, or 140%, in 3P reserves from the 2.7 Tcf reported at year-end 2008. The company's 3P reserves have been determined in accordance with the guidelines of the Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS).

"From 2005, when CNX Gas was formed, through 2009, proved reserves are up 83%, while annual production has increased over 90%," commented J. Brett Harvey, chairman and chief executive officer. "For CNX Gas to so quickly grow these key metrics, while incurring almost no debt, is nothing short of spectacular. I congratulate our team for their superb execution of our plan."

"With these results, I believe that CNX Gas could quite possibly lead the industry in the efficient deployment of capital," continued Mr. Harvey. "No matter what happens with gas pricing, CNX Gas is poised to continue adding to shareholder value."

Of the 1,911 Bcf of proved reserves, 1,040 Bcf, or 54%, are categorized as proved developed. At year-end 2008, 783 Bcf, or 55%, were categorized as proved developed.

The proved reserve estimate for 2009 was prepared by CNX Gas and audited by Netherland, Sewell & Associates, Inc. The following table shows the breakdown of reserves, in Bcf, from the company's current development and exploration plays. Over 99 percent of the company's proved reserves are gas.

The future net cash flows of the CNX Gas proved gas reserves have a present value of nearly $1.5 billion before income taxes, assuming a ten percent discount rate, as of December 31, 2009. This compares with a value of nearly $2.0 billion at December 31, 2008. The decrease in value was largely driven by lower prices, although was partially offset by a 34% increase in proved reserves. The values assume flat pricing and constant unit costs. The average price used in the latest reserve study was $4.19 per Mcf, versus $6.23 per Mcf used in 2008. Both prices exclude the effects of hedged production.

In Virginia CBM, there are 1,512 identified PUD locations and another 1,528 in the probable/possible categories. Mountaineer CBM has 25 identified PUD locations and another 699 in the probable/possible categories. Nittany CBM has 84 identified PUD locations and another 173 in the probable/possible categories.

Additionally, CNX Gas updated its estimates of net unrisked resource potential of the company's extensive eastern shale position in a range from 8.0 Tcf to 15.1 Tcf. When combined with the 3P reserves of 6.5 Tcf, it means that total reserves and resources could range from 14.5 Tcf to 21.6 Tcf. Note that all of the Chattanooga Shale is included in the 3P analysis above; there is no remaining net unrisked Chattanooga Shale resource.

The range of net unrisked resource potential is based on both internal and external sources. In the Marcellus Shale, no value is assigned to the 79,000 acres that are in Ohio. Of the remaining 171,000 acres, 47,000 acres have 3P well locations, leaving 124,000 acres with resource potential. Similarly for the Huron acreage, the range shown is only for the 55,000 acres in eastern Kentucky. Seven hundred horizontal locations are assumed, based on 80-acre spacing.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Various statements in this release, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934). These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties relate to, among other matters, the following: our business strategy; our financial position; our cash flow and liquidity; declines in the prices we receive for our gas affecting our operating results and cash flow; uncertainties in estimating our gas reserves; replacing our gas reserves; uncertainties in exploring for and producing gas; our inability to obtain additional financing necessary in order to fund our operations, capital expenditures and to meet our other obligations; disruptions, capacity constraints in or other limitations on the pipeline systems which deliver our gas; competition in the gas industry; the availability of personnel and equipment; increased costs; the effects of government regulation and permitting and other legal requirements; legal uncertainties regarding the ownership of the coalbed methane estate; costs associated with perfecting title for gas rights in some of our properties; our need to use unproven technologies to extract coalbed methane in some properties; our relationships and arrangements with CONSOL Energy; and other factors discussed under "Risk Factors" in the 10-K for the year ended December 31, 2008. We are including this cautionary statement in this release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf, of us.

CAUTIONARY STATEMENT CONCERNING RESOURCES

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations.  We use certain terms in this presentation, such as "resource potential" that the SEC's rules strictly prohibit us from including in filings with the SEC.  We also caution you that the SEC views such "resource potential" estimates as inherently unreliable and these estimates may be misleading to investors unless the investor is an expert in the gas industry.

Except with respect to PDPs for which we perform comprehensive title review prior to drilling, the reserve and resource data contained in this release is based on a summary review of the title to coalbed methane and other gas rights we hold, as well as a summary review of the title to the coal from which many of our rights derive.  As is customary in the gas industry, prior to the commencement of gas drilling operations on our properties, we conduct a thorough title examination and perform curative work with respect to significant defects.  We are typically responsible for curing any title defects at our expense. This curative work may include the acquisition of additional property rights in order to perfect our ownership for development and production of the gas estate.

Investor Contact: Dan Zajdel (724) 485-4169

SOURCE CNX Gas Corporation