Petrohawk Energy Corp. has entered into a definitive agreement to sell its Gulf Coast division to a privately owned company for $825 million. The sale is expected to close during the fourth quarter.
The company said in June it would sell the Gulf Coast division and increase its holdings in the Fayetteville Shale and in North Louisiana, as well as form a master limited partnership to initially hold some of its mature domestic assets (see Daily GPI, June 26).
The Houston-based independent producer reported proved reserves of 204 Bcfe for its Gulf Coast division at year-end 2006. The properties currently are producing approximately 100 MMcfe/d.
Petrohawk said it will use the proceeds from the sale of the Gulf Coast division to finance acquisitions, accelerate development in the Fayetteville Shale and Cotton Valley tight gas plays and to repay a portion of its revolving credit facility.
At closing, Petrohawk will receive $700 million in cash and a $125 million note. The company is engaged in the acquisition, production, exploration and development of oil and natural gas, with properties concentrated in the Mid-Continent, Gulf Coast and Permian regions.
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