The company drilled 13 operated and 19 non-operated wells in the Haynesville shale. The initial production rates for the 14 operated wells that were completed during the second quarter wells ranged from 9.8 million cubic feet of gas equivalent per day to 22.4 million. These wells had an average initial production rate of 17.3 million cubic feet equivalent per day and an average flowing casing pressure of 6,600 pounds per square inch.

All wells were tested on a 24/64-inch choke with the exception of two that were tested on a 26/64-inch choke. The average initial production rate for 42 operated Haynesville shale completions to date, which excludes two wells that were mechanically compromised, is approximately 17.9 million cubic feet equivalent. Petrohawk utilized 10 horizontal rigs and two pre-drill, or spudder, rigs on average in the Haynesville during the second quarter and exited the quarter with 12 horizontal rigs running.

At the end of the second quarter, 40 company-operated wells were on production with gross production of approximately 285 million cubic feet equivalent per day. After excluding two wells that encountered mechanical issues, Petrohawk had 38 operated wells with at least 30 days of production. The average first 30-day production rate of these 38 wells is 14.2 million cubic feet equivalent per day.

In the first half of 2009, the spud-to-rig release time averaged 55 days, down from 59 days in the second half of 2008. The second quarter average drilling days, excluding two wells that encountered unusually difficult drilling conditions, was just over 46 days. Days from rig release to first sales decreased from approximately 31 days in the fourth quarter 2008 to approximately 16 days in the second quarter.

In the Eagle Ford shale, Petrohawk drilled six operated wells and participated in the drilling of one non-operated well on Hawkville Field, in South Texas. Initial production rates from the three operated wells completed during the second quarter of 2009 averaged 9.3 million cubic feet of gas equivalent per day. The average initial production rate for all eight operated wells completed to date in the Eagle Ford is 8.6 million cubic feet of gas equivalent per day with a 6:1 gas-to-oil and gas liquids equivalency ratio, which corresponds to an effective 10.6 million cubic feet of gas equivalent per day on an 18:1 equivalency ratio, taking into account the Btu content of the gas and natural gas liquids.

Production rates have averaged 6 million cubic feet of gas equivalent per day over the first 30 days of production for the seven wells with at least 30 days of production history, or an effective 6.9 million cubic feet of gas equivalent per day on an 18:1 Btu adjusted revenue equivalency ratio. Two of the wells experienced modest curtailments during the first 30 days of production, and after normalizing those wells to their estimated unrestricted production rates, the 30-day averages are estimated to be 6.6 and 7.6 million cubic feet of gas equivalent per day, respectively.

During the second quarter, Petrohawk operated two horizontal rigs in the field and recently added a third.

Henderson-Cenizo 874 #1H was completed on April 27 at a rate of 9.1 million cubic feet of gas per day on a 25/64-inch choke with 4,012 pounds per square inch flowing casing pressure.

Dora Martin 1716 #1H was completed on May 26 at a rate of 9.7 million cubic feet of gas per day on a 24/64-inch choke with 4,215 pounds per square inch flowing casing pressure

STS-Palmert 944 #1-H was completed on June 17 at a rate of 9.1 million cubic feet of gas per day, on a 24/64-inch choke with 4,350 psi flowing casing pressure.

In addition to the above, the J.C. Martin 1850 #1H was completed on July 17 at a rate of 8.8 million cubic feet of gas per day and 9.1 million cubic feet of gas equivalent per day on a 24/64-inch choke with 3,710 pounds per square inch flowing casing pressure.

Petrohawk has achieved both improved production performance and drilling efficiencies in the field. The first three wells drilled, which included pilot holes with extensive technical data gathering as well as setting intermediate casing, averaged 53 days spud to total depth. The company has now drilled six wells without setting intermediate casing and without drilling a pilot hole, and these six wells reached total depth of approximately 16,000 feet in an average of 18 days. As a result of this decrease in drilling days, as well as significant decreases in service sector costs, drilling and completion costs have been reduced from approximately $12 million to approximately $5 million per well.

These cost reductions have occurred while the average lateral length has increased. The first three wells averaged 3,620 feet with 10.7 frac stages while the last six wells averaged 3,990 feet' with 13.3 frac stages. The last well completed, the J.C. Martin 1850 #1H, utilized 18 frac stages.

Petrohawk is using a similar approach in the Eagle Ford to that in the Haynesville, where the company is making controlled changes to the original completion technique in an attempt to optimize completions. Although early in the field's development, Petrohawk believes additional efficiencies remain to be gained.

Petrohawk operated two horizontal rigs in the Fayetteville shale on average during the second quarter. The company drilled 11 operated wells and participated in 68 non-operated wells during the period. Eight of the operated wells have been completed to date with an average initial production rate of 1.2 million cubic feet of gas equivalent per day. All of these wells were drilled in the far northern portion of the play where drilling and completion costs are currently approximately $1.8 million per well, with an average of 11 days spud to rig release, which has decreased from 15 days in the fourth quarter 2008. Wells drilled during the second quarter had an average lateral length of 3,170 feet with an average of 9.7 frac stages as compared to fourth quarter wells with an average lateral length of 3,080 feet and 7.9 frac stages.

One of the most positive aspects of the Fayetteville Shale development has been the growth of the non-operated component. Over the first half of 2009, net non-operated production has grown from 18.3 million cubic feet of gas equivalent per day to 32.6 million cubic feet of gas equivalent per day, a 78% increase since Jan. 1. While the operated component has declined from 52.9 million cubic feet of gas equivalent per day to 47.7 million because of running only two rigs, overall net production from the field has grown from 71.2 million cubic feet of gas equivalent per day to 80.3 million. This is more than 13% production growth from Jan. 1 to the end of the second quarter.

Petrohawk chairman, president and chief executive Floyd Wilson says, “This quarter, our operations in two prominent U.S. shale plays, the Haynesville and Eagle Ford shales, made key strides in further establishing productive areas and achieving operational efficiencies. Operational improvements have resulted in lower average costs per well and higher initial production rates which we believe will lead to increased returns on investment.”

He adds, “We continue to be fiscally conservative, expanding our portfolio of hedges into 2011. Based on the combined effect of strong quarterly performance and positive hedge positions, we stand in an excellent position to continue our exciting pace of production and reserve growth.”

Petrohawk has properties in North Louisiana, Arkansas, South Texas, East Texas, Oklahoma and the Permian Basin.