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Petrohawk Agrees To Sell Permian Basin Properties For $376 Million

By Amarendra Bhushan for CEOWORLD Magazine Updated:September 21, 2009

US-based Oil and gas company Petrohawk Energy Corp. said today it has sold its stake in the Permian basin for $376 million.

Proceeds from the sale will be used on shale assets, particularly developments in the Haynesville and Eagle Ford Shales, said Petrohawk in a statement.

The sale is expected to close by 30 October with an effective date of 1 July.

Last year, Petrohawk reported estimated proved reserves at its Permian Basin assets of 177 billion cubic feet equivalent for these assets, which produce about 30 million cubic feet per day.

The sale of the assets, located in the western part of Texas and southeastern part of New Mexico, is expected to close by Oct. 30.

The Haynesville Shale is a formation that lies in parts of Texas, Oklahoma and Louisiana. The Eagle Ford Shale is located in South Texas.

“Proceeds from this sale will add to our already-strong liquidity position, as we continue to focus our attention on our rapidly growing shale assets, particularly high-return, high-margin development in the Haynesville and Eagle Ford Shales,” said Floyd C. Wilson, Chairman and CEO.

As of December 31, 2008, Petrohawk reported estimated proved reserves of 177 Bcfe for these assets. The properties are currently producing approximately 30 Mmcfe/d.

Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with the sale.

Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in North Louisiana, Arkansas, South Texas, East Texas, and Oklahoma.

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