BHP BILLITON TO ACQUIRE PETROHAWK

BHP Billiton Ltd. (BHP), the world’s largest mining company, agreed to acquire Petrohawk Energy Corp. for $12.1 billion in cash to extend its shale oil production in the U.S.

Melbourne-based BHP will pay Petrohawk $38.75 a share, the two companies said today in a statement. That’s 65 percent more than the Houston-based company’s closing price on July 14.

The acquisition gives BHP three assets across about one million net acres in Texas and Louisiana. BHP agreed to pay $4.75 billion in cash in February for Chesapeake Energy Corp.’s Arkansas shale gas assets to tap growth in the U.S. gas market, the world’s biggest.

“Petrohawk has a focused portfolio of three world class onshore natural gas and liquids rich shale assets,” BHP Petroleum Chief Executive J. Michael Yeager said in the statement.

Petrohawk fell 1.8 percent to close yesterday at $23.49 at in New York. BHP fell 0.1 percent to A$43.60 at the 4:10 p.m. close of Sydney trading yesterday.

The purchase would be the largest acquisition of a U.S. exploration and production company since Exxon Mobil Corp. bought XTO Energy Inc. for $34.9 billion in 2009, according to Bloomberg data.

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Permalink Reply by JHH on July 28, 2011 at 0:34
I think i know what you are trying to say.  But if you had a choice... who would you rather be drilling your minerals... the Chinese or the Australians... or Hugo Chavez?
Permalink Reply by Cayman Bum on August 4, 2011 at 16:53

Too bad KinderMorgan didn't buy Petrohawk. Rich Kinder is so good he could even get the Federal Budget balanced and make us a booming economic power again!

Permalink Reply by Skip Peel - Mineral Consultant on June 5, 2013 at 14:57

darnetta, it depends on exactly where your minerals are located in Shelby County?  Have you joined the Shelby County Group and looked through those discussions?

http://www.gohaynesvilleshale.com/group/shelbycounty

I haven't looked at activity in Shelby County in ages.  I suggest that you "friend" jffree1 for help.

http://www.gohaynesvilleshale.com/profile/jffree1?xg_source=profile...

Permalink Reply by Tootie Fruitie on July 16, 2013 at 20:36
Petro Hawk is somehow related to Encana because they sent me the 1099 for the IRS when I am leased to Emcana...confusing. ..oh well any who!
Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2013 at 0:43

Few drilling & production units have 100% of the minerals leased to one company.  When a unit is approved by the state one company is granted the right to operate (drill wells). That company becomes the operator of the unit and the other companies become Working Interests in the wells. The working interests may market their share of the gas or oil produced from unit wells or allow the operator to do so.  They may also choose to pay the royalty owed lessors under their leases or assign that job to the unit operator.  You may be leased to EnCana but Petrohawk is the operator of the unit in which your mineral interest is located.  This is a very common situation.

Permalink Reply by ledlights on July 19, 2013 at 8:39

FWIW - We experienced a very long delay in getting royalties from Petrohawk/BP for a well that Petrohawk JV'd with EOG. I don't know how indicative this was of disorganization in the corporate transition, but it took us over a year to get BP to catch up on their share of the royalties while EOG never missed a beat on their part. 

Permalink Reply by ledlights on July 22, 2013 at 7:31

I meant "BHP" not BP. 

Permalink Reply by macgyver915 on July 22, 2013 at 8:13

Same here with BHP, except that it was QEP instead of EOG.  BHP wouldn't even return a phone call from me.  I was on the verge of sending a demand letter, when all of a sudden more than a year and a half worth of royalties came in one check.  A nice check, but BHP still sucks.

Permalink Reply by William C. Morrison on July 17, 2013 at 7:39

When I lived in Arizona 1998 to 2002, BHP bought up a couple of the active copper mines.  The price of copper dropped, so they closed the mines and then sold them to Mexican mining companies.  I would be wary of BHP buying anything.  They are here today and gone tomorrow kind of operation.

 

Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2013 at 9:13

BHP is a positive for Petrohawk and Haynesville mineral interests.  Petrohawk operations were constrained by tight capital from the Lehman Brothers bankruptcy on as Lehman was their primary lender.  Funding for Haynesville operations is no problem now.  I doubt that they will be here and then gone in the Haynesville Shale.

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