Petrohawk agrees to buy private company for $53M cash

Exploration and production independent Petrohawk Energy said it has agreed to purchase an undisclosed private company and its 20 billion cubic feet of gas equivalent proved reserves for $53 million in cash.

The properties to be acquired are in south Louisiana and south Texas, Petrohawk said Feb. 7, adding that the deal is expected to close Feb. 28.

The transaction also includes 5 million cubic feet of gas equivalent production per day, 46 percent of which is natural gas and 47 percent of which is proved developed reserves. The properties also include more than 100 billion cubic feet of probable and possible equivalent reserves, Petrohawk said.

The company noted that the major properties include interests in a multi-pay field in south Louisiana, with 16 billion cubic feet of equivalent proved reserves. In south Texas, significant properties include interests in a multi-pay Frio sand field with 7 billion cubic feet of estimated proved reserves, the company said.

Petrohawk said it plans an aggressive drilling program on the properties in 2005 and increased its previously announced 2005 capital program from $60 million to $70 million. The company said it expects to finance the transaction through its existing credit facility.

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