Haynesville Shale - PetroHawk ( HK ) signs deal

This morning we have news out of PetroHawk Energy ( HK ) and Mainland Resources ( MNLU ) regarding the Haynesville Shale. These two companies will be apart of a joint venture in the Louisiana Shale deposit known as the Haynesville Shale.

Mainland Resources, Inc. holds interest in approximately 2,695 net acres which form part of the East Holly Field in De Soto Parish, northwest Louisiana.
Under the terms of the Definitive Agreement, Petrohawk agrees to pay 100% of the costs of development associated with the first well drilled below the Cotton Valley Formation, including drilling, completing and fracture stimulating, as well as costs up to and including pipeline connection. Petrohawk also agrees to pay 80% of all costs of the second well drilled on the Leases below the base of the Cotton Valley and Mainland agrees to pay 20% of the costs. For the third, and all subsequent wells drilled on the Leases below the base of the Cotton Valley Formation, Petrohawk will pay 60% and Mainland will pay 40%.
Mainland will immediately transfer 60% of its De Soto Parish leases to Petrohawk, but only as the Leases relate to all depths below the base of the Cotton Valley Formation, and specifically the Haynesville Shale. Mainland retains rights to all Cotton Valley and Hosston formation production on these Leases. Petrohawk agrees to gather and market Mainland's production from above the base of the Cotton Valley Formation, pursuant to a mutually acceptable agreement.

Full Article - http://biz.yahoo.com/prnews/080805/latu059.html?.v=101