Petrohawk To Sell Oklahoma WEHLU For $155MM

Acquired 98% WI in 24,480 acres & 39% WI in 5,680 acres in WEHLU Field in OK Anadarko Basin.

An undisclosed privately held company has acquired the interest in West Edmond Hunton Lime Unit (WEHLU) Field in the Anadarko Basin in central Oklahoma held by Petrohawk Energy Corp., Houston, (NYSE:HK) for $155 million.

As of year-end 2009, Petrohawk had estimated proved reserves of 23 billion cubic feet of gas equivalent associated with its interests in WEHLU. Current production is approximately 12 million cubic feet 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 in which Petrohawk holds 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 opportunities.

Petrohawk chairman and chief executive Floyd C. Wilson says, "Our 2010 divestiture plan is well underway with progress made on all fronts. This sale of our noncore property at WEHLU in Oklahoma is an important first step in this endeavor."

RBC Richardson Barr was financial advisor to Petrohawk. The effective date is April 1.