Petrohawk Sells Gulf Coast Division

Petrohawk has agreed to sell its Gulf Coast division for U.S. $825 million to a privately owned company.

Effective July 1, 2007, the sale is subject to conditions but is expected to finalize by the end of the year.

Petrohawk is going to receive $700 million in cash and $125 million in a note. The company is planning on using the proceeds from the sale to boost development in the Fayetteville Shale and Cotton Valley projects, as well as repay a part of its revolving credit facility.

Merrill Lynch Petrie Divestiture Advisors served as marketing and financial advisor during the sale. The private company buying Petrohawk's Gulf Coast division has not been divulged.