Nittany is our CBM project in central Pennsylvania. When CNX Gas sold shares in a private placement in August 2005, the company had not yet completed the entire acreage cataloging effort. The 256,000 net acres that now comprise this play were unveiled at the company’s July 2006 investor conference. First sales production occurred on November 1, 2007. Effectively, this project went from concept to production in a scant 16 months.

Our operations team started this play with a clean sheet of paper. They worked with the CNX Gas reservoir engineers to estimate the best locations to begin drilling. Then, they negotiated well sites and pipeline rights of way with landowners. They introduced themselves to the communities in which they expected to operate and met with local officials.

Towards the very end of 2006, we drilled two vertical test wells, NT-97 and NT-47. Seam-by-seam fracing and injection/falloff tests were performed to estimate the permeability and porosity of the coal. A methodical procedure was followed in order to minimize the likelihood of proceeding to full scale development of the play and then finding that production was below expectations. Target seams include Upper Mahoning, Freeport, and Kittanning.

The results of the first ten wells showed average flow rates of 80 Mcf per well after only a few months. Expectations had been to see 45 Mcf per well after about two wells, so the results exceeded average field expectations.

Operations laid out plans for the gathering system. Construction of the 48,000-foot line, along with two compressor stations and a measuring and regulating station began in May 2007. Eight additional wells were also drilled during this time. All activity was coordinated to enable the field to achieve the November 1 start-up date. Nittany is a perfect example of our ability to rapidly monetize our impressive asset inventory.

Production at Nittany is not burdened with royalties or severance taxes. Nor, does the gas need to be processed, for it is of pipeline quality. Well completion costs have been less than the expected $240,000 per well.

Fourteen wells were drilled throughout 2007. Plans are to drill 100 wells in Nittany in 2008, with 85 wells having been drilled through the September 2008 quarter. Gas production from Nittany, is expected to be about 0.7 Bcf in 2008.