XTO Acquires Arkansas Shale Assets

Petrohawk Energy Corporation, which is engaged in the exploration and development of shale-based oil and natural gas resources, has completed the sale of its natural gas assets in the Fayetteville Shale, located primarily in Cleburne and Van Buren Counties, Arkansas, to XTO Energy Inc., a subsidiary of ExxonMobil, for $575 million.
The sale has an effective date of October 1, 2010. In addition, the Company has entered into a definitive agreement with XTO Energy to sell its midstream assets in the Fayetteville Shale for $75 million. The portion of the transaction involving the midstream assets is expected to close in early 2011 and is subject to regulatory approval and customary closing conditions.
As of December 31, 2009, Petrohawk had estimated proved reserves in the Fayetteville Shale of approximately 299 billion cubic feet of natural gas. Current production is approximately 98 million cubic feet of natural gas equivalent per day (Mmcfe/d). Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with both transactions.