Thursday, May 7, 2009

Petrohawk Increases Capital Budget by $400 Million

In its quarterly earnings call, Petrohawk announced that it has increased its capital budget for 2009 from $900 million to $1.3 billion. The company feels that it now has better access to cash and it also feels that its opportunity in the Haynesville Shale needs to be exploited. Most of this will be allocated to the Haynesville Shale. The company will increase its rig count in the play from 10 to 16 by the end of the year. Petrohawk expects to do six completions per month and targets 80 to 85 new wells this year. Some of the additional capex may be used for additional lease acquisition.

It's most recent well, Power 21-1H in Bossier Parish, came in the other day at 22.4 MMcfe/day at 75,000 pounds flowing casing pressure. I hope to be able to post more Petrohawk results soon.

Additionally, management discussed well costs on the call, noting that they have been around $9.5 million. They expect these costs to come down but weren't specific how far.

The company is also working to expand its takeaway capacity in the region, getting ready for a big year in 2010.

No comments: