CNX Gas Corporation (NYSE: CXG) has proved reserves of 1,422 billion cubic feet (Bcf) as of December 31, 2008, or an increase of 6% from the 1,343 Bcf reported at year-end 2007. Proved reserves would have increased by 8%, to 1,450 Bcf, if the year-earlier pricing had been used.

An additional 1,323 Bcf are categorized as probable or possible reserves as of December 31, 2008, or an increase of 41% from the 941 Bcf probable or possible reserves reported at year-end 2007. This means that total proved, probable, and possible reserves (also known as "3P reserves") were 2,745 Bcf as of December 31, 2008. This is a 20% increase in 3P reserves from the 2,284 Bcf reported at year-end 2007.

Additionally, CNX Gas updated its estimates of net unrisked resource potential of the company's extensive Eastern Shale position in a range from 4.7 trillion cubic feet (Tcf) to 12.6 Tcf. When combined with the 3P reserves, it means that total recoverable reserves and resources could range from 7.4 Tcf to 15.3 Tcf.

J. Brett Harvey, chairman and chief executive officer, said, "CNX Gas continued to show meaningful growth in proved reserves in 2008. We also booked proved reserves for the first time from our successful Chattanooga and Marcellus Shale exploration program.

"CNX Gas invested $290.8 million in drilling capital expenditures in 2008," Mr. Harvey continued. "This yielded extensions and discoveries of 182.7 Bcf, resulting in a finding cost of $1.59 per Mcf. This figure, although impressive in and of itself, is even more so when one considers that CNX Gas drilled 213 infill wells in Virginia. These wells, which don't create offset locations, cost $67 million."