The properties to be acquired are located in South Louisiana and South Texas. Additional transaction highlights include the following estimates:
Major properties in the asset base include interests in a multi-pay field in South Louisiana, with 16 Bcfe of estimated proved reserves, 1,018 gross acres and nine PUD locations. In South Texas, significant properties include interests in a multi-pay Frio sand field with 7 Bcfe of estimated proved reserves, 4,230 gross acres and fifteen PUD locations. The acquisition also includes 3-D seismic data covering all major properties. Petrohawk plans an aggressive drilling program on the properties in 2005 and increased its previously announced 2005 capital program from $60 million to $70 million.
The transaction is expected to close by February 28, 2005 and is subject to customary closing adjustments and conditions. Petrohawk expects to finance the transaction through its existing credit facility.
Most Popular Articles