Petrohawk Energy Corporation has signed a definitive agreement to purchase strategic assets in the Fayetteville Shale for $343 million in cash from Alta Resources, Contango Oil & Gas Company and other parties.
The assets include over 24,000 net acres with estimated reserve potential of over 500 billion cubic feet equivalent, approximately 50% operated. The properties are located in the core of the Fayetteville Shale play, primarily in Van Buren and Conway Counties, Arkansas.
Based on 60-acre spacing, the properties add a substantial number of drilling locations to Petrohawk’s current inventory in the play. Of the total net acreage acquired, the company estimates that only 11% is classified as proved.
Floyd Wilson, chairman, president and CEO, said: Today’s acquisition is another strategic step in our building a uniquely resource-rich company. This transaction is also consistent with our plans to reinvest proceeds from the recently announced sale of our Gulf Coast division and shift our inventory and drilling focus to low-risk, low-cost opportunities.