Thursday, August 14, 2008

Updated Petrohawk Presetation

Petrohawk (HK) recently came out with an updated investor presentation. There is nothing particularly earth shattering - it was at its core a "Rah Rah!" document aimed at enhancing the company's share price, especially in light of its recent decline and the sale of an additional 25 million shares to support growth - but it does affirm the company's devotion to the Haynesville Play.

The most interesting piece of information was the map (above) showing where the company has drilled, where it is currently drilling and where it will be drilling for the second half of 2008. HK is definitely focusing its efforts along the path of the Red River and the Bossier/Caddo/Red River Parish borders.

Some highlights:
  • HK has leased 300,000 net acres, up from the 150,000 it had in May, obtained at an average cost of $5,000. Obviously that cost per acre has gone up, but the company has already tied up most of the large chunks of acreage it has targeted.
  • HK has ten rigs in the area and anticipates having 20 by year end 2009. At that point, HK expects to have drilled 140 horizontal wells. The company's current Haynesville Play capital budget is $218 million.
  • The company remains open to deals and joint ventures. While things are still settling out, I would expect more sales of lease rights or joint ventures for producing among the various participants or prospective market entrants.

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