CNX Gas Corporation 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 productionyielded 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 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.

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.

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