Monday, December 29, 2008

Petrohawk's Haynesville Capex Budget

While there has been much bad news where it concerns capital budgets (drilling money) for gas E&P companies, one thing recently caught my eye. Petrohawk, which has been aggressive in the Haynesville Play but has been overshadowed by Chesapeake Energy, announced that it has reduced its capital budget for 2009 from $1.5 billion to $1.0 billion. That's not so hot on the surface, but looking at how the budget is allocated, more than 55%, or $550 million, is allocated to the Haynesville Shale. Twelve of the company's twenty rigs will be allocated to the Haynesville Play. Not so shabby!

Here is a link to a recent company presentation detailing this information.

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