Petrohawk Energy Corp.

Petrohawk Energy Corp. has retained BMO Capital Markets to sell certain assets in the Anadarko, Arkoma and East Texas Basins in Oklahoma, Texas and Arkansas.

The three packages offered include assets characterized by long life, reliable proved developed producing wells with potential behind-pipe recompletions, drilling opportunities and operational upsides. Total production is 15.5 million cubic feet per day equivalent (88% gas; 44% operated). Total net cash flow is $1.9 million per month.

The Anadarko Basin package features exposure to emerging Granite Wash and Cleveland horizontal plays, Brown Dolomite, Morrow, Atoka and extension of the Cana shale. Net production is 5.9 MMcfe per day (90% gas; 26% operated). Monthly net cash flow is $777,000.

The Arkoma Basin package features conventional assets producing from Red Fork and Spiro as well as a coal-bed methane and a Woodford shale position operated by BP Plc, XTO Energy Inc., Newfield Exploration & Production and Cimarex Energy Co. in fields including Mansfield, Kinta and Wilburton. Net production is 7 MMcfe per day (95% gas; 35% operated. Monthly net cash flow is $799,000.

The East Texas package features conventional Cotton Valley and Travis Peak assets in fields such as Oak Hill, Carthage and Blocker with exposure to multiple horizons in the Freestone trend and an operated oil waterflood expansion project. Net production is 2.6 MMcfe per day (65% gas; 82% operated). Net cash flow is $367,000 per month.

The data room will open in mid July. The bid due date is in late August. Contact Miles Redfield, 713-546-9715, miles.redfield@bmo.com.