2008-09-24-2007-12-12-2008-01-22

Bought N. LA assets, gaining 83 Bcfe proved, production of 10 MMcfe/d.

Petrohawk Energy Corp., Houston, (NYSE: HK) plans to acquire additional interests in Elm Grove Field in Bossier and Caddo parishes, Louisiana, from several private sellers for a total purchase price of approximately $169 million. Assets include approximately 83 billion cubic feet of gas equivalent of proved reserves (35% proved developed; 90% operated). Net production is approximately 10 million cubic feet of gas equivalent per day. Approximately 3,000 net acres are included. Petrohawk chairman, president and CEO Floyd C. Wilson says, "Today's addition opens up underdeveloped territory to our experienced drilling and operating team in Elm Grove Field. Elm Grove is our most efficient field in terms of investment payouts, ultimate recoveries, operating costs and price realizations. This new acreage has not been developed in the Hosston formation, has had only limited development in the Lower Cotton Valley, and will be highly complementary to our 20-acre drilling program in the field. "This transaction adds substantially to our estimated 1,500 future locations in Elm Grove and slots perfectly into our strategy. Our latest additions in Terryville Field, the Fayetteville shale, and now Elm Grove, in addition to completing our Gulf Coast divestment, have reshaped Petrohawk's inventory into a valuable concentration of low-risk, high-margin drilling opportunities." The purchase is expected to qualify as a like-kind exchange for property sold in Petrohawk's recent Gulf Coast divestment. Closing is expected by the end of January. The effective date is Jan. 1. Petrohawk operations are concentrated in North Louisiana, Arkansas, East Texas, Oklahoma and the Permian Basin.