2010-01-07-2009-11-02-2009-11-02

Entered JV to acquire 50% WI in 26,000 acres in S.TX Eagle Ford shale.

Petrohawk Energy Corp., Houston, (NYSE: HK) has entered into a joint-venture agreement to acquire a 50% interest in Eagle Ford shale acreage in South Texas from Swift Energy Co., Houston, (NYSE: SFY) for $39 million in cash and drilling carries. Petrohawk paid approximately $26 million in cash and will fund approximately $13 million of Swift Energy's capex within the first 12 months. If any remains unused at the end of this time, it will be paid to Swift as cash consideration. The agreement involves jointly developing and operating approximately 26,000 acres in McMullen County, Texas, in AWP Field. It covers leasehold interests beneath the Olmos formation, including the Eagle Ford shale formation, extending to the base of the Pearsall formation. Petrohawk will be operator during the drilling-and-completion phase, and Swift Energy will operate the wells during the production phase. The appraisal drilling program will begin by year-end 2009 with an acceleration of activity anticipated in 2010. Petrohawk chief executive Floyd C. Wilson says, "Swift Energy's position, geologically speaking, is in what we believe to be an ideal depositional location and contiguous to our rapidly growing program in Hawkville Field. We will waste no time in bringing the experience derived from our established Eagle Ford drilling program, as well as our access to processing and transportation in the area, to this new acreage for the mutual benefit of our two companies." Swift Energy chief executive Terry Swift says, "Petrohawk is one of the leaders in developing natural gas from shale formations responsibly, efficiently and cost effectively. Their technical and commercial expertise has already produced strong operational results in the Eagle Ford shale, making Petrohawk an excellent choice as a partner for this project…This transaction is another step forward in Swift Energy's plan to build operational momentum and strengthen its balance sheet entering 2010." Swift Energy has operations onshore Louisiana and Texas and in the inland waters of Louisiana. Petrohawk focuses in North Louisiana, Arkansas, East Texas, South Texas and Oklahoma.