HOUSTON, Oct. 16 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation (NYSE: HK; "Petrohawk" or the "Company") has entered into a definitive agreement to sell its Gulf Coast division to a privately-owned company for total consideration of $825 million. The sale is expected to close during the fourth quarter of 2007, subject to customary closing conditions and adjustments. The sale is effective July 1, 2007. As of December 31, 2006, Petrohawk reported proved reserves of 204 Bcfe for its Gulf Coast division. The properties are currently producing approximately 100 Mmcfe/d. "Our resource development program is moving swiftly, and the sale of our Gulf Coast division is a significant step in our continuing efforts to build a high-margin, resource-rich asset base," said Floyd C. Wilson, Chairman, President and CEO. Petrohawk 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 intends to report the transaction under the installment sale rules and to utilize a like-kind exchange structure for a portion of the sales proceeds, both of which would result in additional value in this transaction. Merrill Lynch Petrie Divestiture Advisors acted as marketing and financial advisor to Petrohawk in connection with the sale. Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of oil and gas, with properties concentrated in the Mid-Continent, Gulf Coast and Permian regions. For more information contact Joan Dunlap, Vice President - Investor Relations, at (832) 204-2737 or . For additional information about Petrohawk, please visit our website at http://www.petrohawk.com/. Additional Information for Investors This press release contains forward-looking information regarding Petrohawk that is intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on Petrohawk's current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward looking statements in that they reflect estimates based on certain assumptions that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Petrohawk's operations or financial results are included in Petrohawk's other reports on file with the SEC. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Petrohawk does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change. DATASOURCE: Petrohawk Energy Corporation CONTACT: Joan Dunlap, Vice President - Investor Relations of Petrohawk Energy Corporation, +1-832-204-2737, Web site: http://www.petrohawk.com/

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