Petrohawk Energy Corporation has entered into a definitive agreement to sell its interest in the West Edmond Hunton Lime Unit (WEHLU) Field in Oklahoma County, Oklahoma to a private company for $155 million. The sale is the first of four asset packages expected to be sold by the Company during 2010.
"Our 2010 divestiture plan is well underway with progress made on all fronts. This sale of our non-core property at WEHLU in Oklahoma is an important first step in this endeavor," said Floyd C. Wilson, Chairman and CEO.
As of December 31, 2009, Petrohawk had estimated proved reserves of 23 billion cubic feet of natural gas equivalent (Bcfe) associated with its interests in WEHLU. Current production is approximately 12 million cubic feet of natural gas equivalent per day (Mmcfe/d). Closing of the transaction is expected to be on or before April 30, 2010, with an effective date of April 1, 2010. The transaction is subject to customary closing conditions and adjustments.
RBC Richardson Barr acted as marketing and financial advisor to Petrohawk in connection with the sale.
Additionally, the Company has completed a portion of an additional 2010 divestiture package. Two transactions involving properties in the Mid-Continent region have been closed for a sale price totaling approximately $20 million. These include, in total, approximately 7 Bcfe of estimated proved reserves and approximately 3 Mmcfe/d of production.
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