Petrohawk Energy Corp. (NYSE: HK) has entered into a definitive agreement to sell its interest in Terryville Field in Lincoln and Claiborne parishes, Louisiana, to a private company for $320 million. The sale is the second of four asset packages expected to be sold by the company during 2010.

“Within the first quarter, Petrohawk has sold two major fields, plus miscellaneous properties, as part of its billion- dollar 2010 divestiture program. These asset sales total nearly $500 million, with a third major sale process continuing to progress. We remain confident in our plan for 2010 and beyond,” says Floyd C. Wilson, chairman and chief executive officer.

As of year-end 2009, Petrohawk had estimated proved reserves of approximately 110 billion cu. ft. of natural gas equivalent (Bcfe) associated with its interest in Terryville Field, 53% of which was proved developed. Proved reserves were approximately 92% natural gas. Current production is approximately 20 million cu. ft. of natural gas equivalent per day. The transaction is expected to close on or before May 31, 2010, with an effective date of January 1, 2010.

Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with the sale.

In another step in its divestiture plans, an undisclosed private company agreed to acquire Petrohawk’s interest in West Edmond Hunton Lime Unit (WEHLU) Field in the Anadarko Basin in central Oklahoma for $155 million.

As of year-end 2009, Petrohawk had estimated proved reserves of 23 billion cu. ft. of gas equivalent associated with its interests in WEHLU. Current production is approximately 12 million cu. ft. of gas equivalent per day.

The assets include interests in 30,160 acres in Oklahoma County. Petrohawk operates 24,480 acres with a 98.3% working interest and 80.5% net revenue interest.

Another 5,680 acres are a joint-venture development area with Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) as contract operator with Petrohawk holding a 39.3% working interest and an average 29.7% net revenue interest. The reserves-to-production ratio is 17 years.

Upside includes 62 proved undeveloped locations, two probable and 11 possible, with 17 workover and six deepening opportunities. Petrohawk operates 50% of current net production and 96% of the identified upside.

RBC Richardson Barr is financial advisor to Petrohawk. Closing was expected by April 30.

Additionally, Petrohawk has completed two transactions involving properties in the Midcontinent region for approximately $20 million. Together, these include approximately 7 billion cu. ft. equivalent of estimated proved reserves and production of approximately 3 million cu. ft. equivalent per day.

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