Petrohawk Energy Completes $262 Million Acreage Acquisition
Petrohawk Energy has closed the previously announced acquisition of North Louisiana gas properties for approximately $262 million, before working capital and other closing adjustments. As of December 31, 2005, based on internal estimates prepared in accordance with SEC guidelines and pro forma for the acquisition, Petrohawk owns approximately 551 billion cubic feet of natural gas equivalent (Bcfe) in proved reserves, of which approximately 76% are natural gas. With the added production from this transaction, Petrohawk's current estimated production rate is approximately 146 million cubic feet of natural gas equivalent per day (Mmcfe/d).
The Company funded the transaction with approximately $140 million in proceeds from a private equity placement and borrowings from its commercial bank group. Subsequent to this offering, Petrohawk has approximately 83.3 million common shares of stock outstanding and expects to have approximately $250 million in capacity under its combined credit facilities.
Petrohawk also announced that is has entered into a definitive agreement with a private company to sell substantially all of the Company's Gulf of Mexico properties for $52.5 million in cash. These properties have internally estimated proved reserves as of December 31, 2005 of approximately 26 Bcfe, are approximately 70% gas, 59% proved developed and 27% operated, with lease operating expenses of approximately $2.35 per Mcfe. Current production is estimated to be approximately 10 Mmcfe/d. The transaction is expected to close in March 2006 and is subject to customary closing adjustments and conditions.
Petrohawk Energy Corporation is an independent energy company
engaged in the acquisition, production, exploration and development of
oil and gas, with properties concentrated in the South Texas,
Mid-Continent, East Texas, Arkoma, Permian and Gulf Coast regions.
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