TORONTO (miningweekly.com) – US coal and gas producer Consol Energy on Tuesday said it had produced and sold more gas and coal during the third quarter ended September 30, than expected.

Consol's gas division produced 46.1-billion cubic feet equivalent (Bcfe) during the third quarter, 17% more than the 39.5 Bcfe produced in the 2012 third quarter. The company's third-quarter production guidance was 43 Bcfe to 45 Bcfe. The 2013 third-quarter production included, net to Consol, 491-million cubic feet a day of natural gas, 397 bbl/d of oil/condensates and 1 340 bbl/d of natural gas liquids.

Consol's coal division produced 14.5-million tons in the third quarter. As of September 30, Consol's total coal inventory increased by 158 000 t to 1.08-million tons.

The thermal coal inventory increased by 198 000 t to 971 000 t, and low-volatility coal inventory decreased by 40 000 t, to 104 000 t.

Consol chairperson and CEO Brett Harvey said in an operations report that the company's gas production growth was accelerating as it and its Marcellus Shale partner increased the rig count. Consol and Noble Energy had a record eight rigs drilling in the Marcellus Shale on their joint venture acreage, and they expected to operate at least that many rigs next year, Harvey said.

During the third quarter, Consol Energy drilled 15 horizontal shale wells — 12 in the Marcellus Shale and three in the Utica Shale. Consol completed 21 Marcellus Shale wells and three Utica Shale wells in the third quarter. Consol turned in line 22 Marcellus Shale wells in the third quarter.

In the dry gas areas, Consol drilled five wells in northern West Virginia during the third quarter – one each in Upshur and Barbour counties, and it drilled the final three of six wells on a pad in Barbour county.

Consol had one horizontal rig operating in Upshur county and expected to drill three more wells, which is consistent with previous guidance provided last quarter to drill 11 wells in 2013.

In the wet gas areas, Noble Energy drilled 15 wells: six in Marshall county, three in Doddridge county and six in Washington county.

Last week Consol said it was evaluating its overall corporate structure in response to speculation regarding possible moves by the company.

Speculation abounds that Consol might consider splitting its gas and coal businesses, but the company remained tight-lipped about any details.

In it second-quarter earnings release in July, NYSE-listed Consol said it was evaluating its overall corporate structure "to consider different alternatives to unlock additional value for [its] shareholders".

In a statement, Consol said its evaluation process was ongoing "and all options are being considered".