By OGJ editors
HOUSTON, Oct. 16 -- A privately owned company agreed to buy Petrohawk Energy Corp.'s Gulf Coast division, including Lions gas field in Goliad County, Tex., for $825 million.
The buyer's name was not disclosed. The sale is expected to close during the fourth quarter, subject to customary closing conditions and adjustments.
As of Dec. 31, 2006, Petrohawk reported its Gulf Coast division's proved reserves of 204 bcf of gas equivalent. The division includes more than 257 locations and produces 100 MMcfd.
Petrohawk plans to use sale proceeds to finance acquisitions, accelerate development in the Fayetteville Shale and Cotton Valley tight gas plays, and to repay debt.
Credit Suisse Group analysts issued an Oct. 4 research note saying a sale of the Gulf Coast division could lead to more predictable, lower-cost production assets for Petrohawk.
The company's core assets outside the Gulf Coast division are Elm Grove and Terryville fields in northern Louisiana, analysts said.