Petrohawk to Sell $1B Worth of Pipelines to Fund Oil Exploration
NEW ORLEANS (Dow Jones Newswires), March 30, 2011
Petrohawk plans to sell $1 billion worth of pipelines and other oil and gas gathering equipment this year to help fund oil exploration efforts, said Chief Executive Floyd Wilson.
"We're doing the best we can of moving our dollars as soon as we can into the oilier areas out there," Wilson told investors at an energy conference here.
The Houston oil-and-gas producer plans to "plug any spending gaps with additional divestitures" of pipelines and other so-called midstream assets, Wilson said.
Last April, Petrohawk sold a 50% stake in its gas gathering assets in the Haynesville shale formation in east Texas and northern Louisiana to Kinder Morgan Energy Partners LP for $875 million.
This time Wilson said he hopes to raise at least $1 billion in a sale.
Petrohawk operates primarily in the oil-rich Eagle Ford shale formation in south Texas and the Haynesville formation, which produces gas almost exclusively. While Wilson said Petrohawk will slow drilling in Haynesville this year amid weak natural gas prices, instead directing exploratory efforts toward Eagle Ford, the company plans to hold onto its gas-producing properties.
"We are not letting any of our gas acreage go," Wilson said. "It's going to be solid gold one day."
Copyright (c) 2011 Dow Jones & Company, Inc.
- Ex-Petrohawk CEO to Head $550M Re-Capitalized Ram Energy (Dec 22)
- BHP Billiton Completes Petrohawk Acquisition (Aug 26)
- BHP Billiton-Petrohawk Deal Gets Final Nod (Aug 18)