Petrohawk said that including this acquisition, its leasehold in the Fayetteville Shale has grown to approximately 150,000 net acres. The assets include approximately 18,500 net acres along with a pipeline gathering system.
The new properties reportedly add significant reserve potential and a substantial number of drilling locations to Petrohawk’s current inventory in the play. Of the total net acreage acquired, the company estimates that approximately 10% is classified as proved.
Production from the properties is approximately five million cubic feet of natural gas equivalent per day. Petrohawk estimates proved reserves to be approximately 50 billion cubic feet of natural gas equivalent.
The transaction is expected to close in February 2008. Additionally, a portion of the asset purchase will qualify as a like-kind exchange for property sold in Petrohawk’s recently announced Gulf Coast divestment, with expected deferred tax benefits to the company.
