Petrohawk Energy Corp. said Tuesday it signed a definitive agreement to buy additional acreage in the Fayetteville Shale Trend from a private seller for an estimated $222.5 million. The transaction is expected to close in February.
The assets, which are primarily located in Van Buren, Conway and Cleburne counties in Arkansas, include approximately 18,500 net acres along with a strategically located pipeline gathering system, the Houston-based independent producer said. The acquisition brings Petrohawk’s leasehold in the Fayetteville Shale Trend to an estimated 150,000 net acres.
Petrohawk Energy said the new properties add significant reserve potential and a substantial number of locations to the company’s current inventory in play. Of the total net acreage acquired, it estimated that approximately 10% is classified as proved. Production from the properties is approximately 5 MMcfe/d, while proved reserves are about 50 Bcfe, according to the company.
In December Petrohawk said it completed its purchase of 24,000 net acres of land in the Fayetteville play from Alta Resources LLC, Contango Oil & Gas Co. and some undisclosed parties. Petrohawk paid $343 million in cash for land that has an estimated reserve potential of more than 500 Bcfe, which is about 50% operated (see Daily GPI, Dec. 26, 2007).
The producer also has properties in North Louisiana, East Texas, Oklahoma and the Permian Basin.
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