Petrohawk has entered into a definitive agreement to sell its interest in Terryville Field, located in Lincoln and Claiborne Parishes, Louisiana, to a private company for $320 million. The sale is the second of four asset packages expected to be sold by the Company during 2010.
"Within the first quarter, Petrohawk has sold two major fields, plus miscellaneous properties, as part of its billion dollar 2010 divestiture program. These asset sales total nearly $500 million, with a third major sale process continuing to progress. We remain confident in our plan for 2010 and beyond," said Floyd C. Wilson, Chairman and Chief Executive Officer.
As of December 31, 2009, Petrohawk had estimated proved reserves of approximately 110 billion cubic feet of natural gas equivalent (Bcfe) associated with its interest in Terryville Field, 53% of which was proved developed. Proved reserves were approximately 92% natural gas. Current production is approximately 20 million cubic feet of natural gas equivalent per day (Mmcfe/d). The transaction is expected to close on or before May 31, 2010, with an effective date of January 1, 2010. The transaction is subject to customary closing conditions and adjustments.
Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with the sale.
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