Houston-based junior independent Petrohawk Energy Corp. said Wednesday it will pay $261.67 million in cash for two packages of natural gas reserves in the Elm Grove and Caspiana fields of northern Louisiana. The two private transactions, with an effective date of Jan. 1, 2006, are 98% natural gas, and include an estimated 106 Bcfe of proved reserves and 100 Bcfe of probable and possible reserves.
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KCS Energy said drilling and workover success at Elm Grove field in northern Louisiana increased production to more than 20 MMcf/d. “We have now brought five new drill wells on line and recompleted eight existing wells,” said COO William N. Hahne. “As a result, operated field production rates have risen from an average of 6.1 MMcf/d in 2002 to over 20 MMcf/d currently. We anticipate keeping two rigs active as we drill 15 additional wells in the field during 2003 and will pursue further drilling in subsequent years.” The latest three wells completed in the field targeted the lower Cotton Valley interval and the Cotton Valley Davis zone. Work has begun to commingle the tested zones in each of these wells and will be completed in the near future. The Company also anticipates additional workovers in the field. El Paso Corp. closed the sale of various Midcontinent and northern Louisiana midstream assets to Regency Gas Services LLC, an investment of Charlesbank Capital Partners, for $119 million. The sale supports El Paso’s plan to exit non-core businesses and strengthen and simplifying its balance sheet while maximizing liquidity.
June 5, 2003
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