Consol Energy Inc. has withdrawn its minority-close-out offer for the 18% of CNX Gas Corp. it currently holds, as "certain" shareholders wanted more money. It's initial offer was low, considering CNX's holdings that have potential for Marcellus and other shale-gas production, as well as other promising assets. It is unusual for a minority close-out offer to fail. Consol reports, "There were two key factors that led to management's recommendation (to withdraw the offer). First, price demands from certain CNX Gas stockholders were considered to be unreasonable. Second, recent stock market volatility has made it difficult to accurately assess the ultimate cost of the transaction." For the back story on the offer and on CNX's assets, see The Consol Bid For CNX (Marcellus Shale) and "Reconsideration" in the March 2008 issue of Oil and Gas Investor. It is also available at

Michael Bodino, E&P analyst for Coker & Palmer, says, "We viewed the original offer as a starting point and thought the offer would have to increase if it was going to go through. We think Consol stepping away is a positive for (CNX Gas) stock and should allow the company to benefit from its Appalachian acreage position like its peers have seen during 2008." He has upgrading his outlook for CNX Gas shares from Neutral to Buy and has a 12-month price target of $43.

–Nissa Darbonne, Executive Editor, Oil and Gas Investor, A&D Watch, Oil and Gas Investor This Week,