Capex Data
Petrohawk plans an $800 million capital budget for 2008, increased from the previously announced $700 million, based on
1) recent acquisitions that the Company believes provide significant growth opportunities
2) expansion on exploratory success in the deep Cotton Valley Taylor Sand section at Elm Grove field
3) expansion on exploratory success in the Gray Sand and Bossier formations at Terryville field and
4) initial positive drilling results in the more northern portions of the Fayetteville Shale that Petrohawk believes support additional expenditures for both development drilling and infrastructure.
In August 2007, Petrohawk raised its full year 2007 capital budget to $675 million. The increase includes seismic and drilling activities associated with newly acquired acreage in the Fayetteville Shale.
Future Plans
Petrohawk's operational plans for 2008 are primarily based on the following;
1) recent acquisitions that the Company believes provide significant growth opportunities
2) expansion on exploratory success in the deep Cotton Valley Taylor Sand section at Elm Grove field
3) expansion on exploratory success in the Gray Sand and Bossier formations at Terryville field and
4) initial positive drilling results in the more northern portions of the Fayetteville Shale that Petrohawk believes support additional expenditures for both development drilling and infrastructure.
The Company plans to utilize 22 operated rigs in this program to drill approximately 350 operated wells, which represent an estimated 90% of the budget.
In 2008, Petrohawk expects average daily production to be between 295 and 315 MMcfe/d, which is an increase from the previously announced range of 265 to 285 MMcfe/d. This represents an approximate 25% increase over the expected pro forma 2007 average daily production rate of 240 MMcfe/d (adjusted for the sale of the Gulf Coast division and recent acquisitions). For the first quarter 2008, average daily production is expected to be between 250 and 260 MMcfe/d.
Proved Reserve Estimates
Based on internal estimates at January 2008, the Company expects year-end 2007 proved reserves to be within a range of 950 Bcfe to 1,050 Bcfe. This represents an approximate 15% increase over pro forma 2006 proved reserves of 872 Bcfe, adjusted for the sale of the Gulf Coast division.