Wednesday, August 4, 2010

Petrohawk Energy (HK): Eagle Ford Shale

By Andrea:

Petrohawk Energy (HK) announced that they foresee a positive future in their Eagle Ford Shale sector in their 2010 Earnings call:

"Also, we expect to see a meaningful oil production component grow, fueled from new areas of our portfolio. Our growing Black Hawk area in the Eagle Ford Shale and our Red Hawk project, also in Eagle Ford Shale, should provide for this growth. This could bring the oil component of production to approximately 5% by year end and possibly much higher in future years. We will look for these higher-margin oil areas to meaningfully support cash flow growth and organic reserve growth."

The growing company experienced their highest level of operating activity in the Eagle Ford Shale to date. Last quarter, they operated an average of 7.5 rigs and drilled 19 wells, 11 in Hawkville, seven in Black Hawk and one in Red Hawk.

Petroawk Energy (HK) announced their first Eagle Ford Shale play in late 2008. It was founded at a depth of approximately 11,000-12,000 feet. The counties where they currently operate Eagle Ford Shale include LaSalle County, TX, McMullen County, TX and DeWitt County, TX. Prospective counties include Redhawk and Zavala County, TX.

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