Petrohawk Energy Corp., Houston, (Nasdaq: HAWK) plans to acquire gas properties in the Elm Grove and Caspiana fields in North Louisiana from Shreveport, La.-based Winwell Resources and another private seller for a total of $261.67 million in cash. The transaction was expected to close in January. Winwell’s operating company in the field is WSF Inc.

The acquisition includes 106 billion cubic feet of gas equivalent of total proved reserves (29% proved developed; 98% gas; 80% operated), 100 billion cubic feet equivalent of probable and possible reserves, and an 18-year reserve-to-production ratio.

Current production is approximately 16 million cubic feet of gas equivalent per day on 27,400 gross acres, while average 2006 projected production for the properties is approximately 20 million equivalent per day.

As part of the transaction, Petrohawk will assume contracts for two operated rigs in addition to between three and five nonoperated rigs active in the fields. Petrohawk intends to finance the acquisition with cash, bank debt and equity.

“We continue to deliver on our strategy to add quality properties that offer significant upside to our portfolio,” says Petrohawk president and chief executive Floyd C. Wilson.

“Our team has broad experience developing properties in the East Texas/North Louisiana region and has seized this opportunity to refine our asset base with high-margin properties, while adding significant development- drilling opportunities. This transaction is very well-suited to our strategy.” Standard & Poor’s reports its ratings and outlook on Petrohawk of B-/Stable/--will be unaffected by the acquisition announcement because the deal is consistent with expectations that Petrohawk will remain an active acquirer of properties in its core areas.

S&P says the acquisition price, which will be roughly $2.47 per thousand cubic feet equivalent of proved reserves, should be supported by hedges on a large portion of production during the next two years.

Curtis R. Trimble, an analyst with Stern, Agee & Leach, maintains a Buy rating on Petrohawk stock with a target price of $22 per share. Trimble estimates the price of Petrohawk’s acquisition to be 8% to 10% below that of recent comparable transactions.

“We believe the transaction will be financed with equal parts debt and equity, resulting in about 14% dilution,” Trimble says. “Even with this prospective dilution, we estimate this acquisition to be immediately accretive to cash flow per share.”

His 2006 and 2007 cash-flow-per-share estimates for Petrohawk have increased to $4.55 and $4.41 from $4.46 and $4.29, respectively, not including any impact from deferred taxes.

Trimble also says the success of Petrohawk’s South Texas drilling program is almost as encouraging as its recent acquisition.

Analyst John M. White of Natexis Bleichroeder increased his fair-value estimate on Petrohawk shares to $18, primarily due to the increased production and cash flow expected to come from the North Louisiana properties.

“We believe the deal fits well within the company’s business model and should expand operations in an existing area. The properties are 80% operated, again an acquisition in the Petrohawk mode, whereby the company should be able to control the pace and nature of development activities and lease operating expenses.”