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August Presentation 2009

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Petrohawk Announces Second Quarter 2009 Financial and Operating Results

--Production Averages 483 Mmcfe/d; Grows 17% Quarter Over Quarter; 2009 Production Guidance Raised to 58% Year Over Year Growth
--Haynesville Shale Position Now Approximately 325,000 Acres; Eagle Ford Shale Holdings Reach Approximately 210,000 Acres

HOUSTON, Aug 04, 2009 /PRNewswire-FirstCall via COMTEX/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) today announced its second quarter 2009 financial and operating results, including record production, drilling cost reductions in the Haynesville Shale and Eagle Ford Shale plays, and increased production guidance for 2009. The Company also issued guidance for 2010 capital expenditures and production.

Petrohawk achieved continued improvements in drilling results and notable operational efficiencies during the quarter, contributing to above-plan production rates in the Haynesville Shale and Eagle Ford Shale. In addition, better than expected results from non-operated drilling contributed to production growth in the Fayetteville Shale. The Company's production for the second quarter averaged 483 million cubic feet equivalent per day (Mmcfe/d), a 17% increase over first quarter 2009 and a 200 Mmcfe/d (71%) increase over the same period one year ago. Total production for the second quarter was 43.9 billion cubic feet of natural gas equivalent (Bcfe), 94% of which was natural gas. This marks the fourth consecutive quarter in which Petrohawk has achieved double-digit quarter-over-quarter production growth.

"This quarter, our operations in two prominent U.S. shale plays, the Haynesville and Eagle Ford Shales, made key strides in further establishing productive areas and achieving operational efficiencies. Operational improvements have resulted in lower average costs per well and higher initial production rates which we believe will lead to increased returns on investment," said Floyd C. Wilson, Chairman, President and Chief Executive Officer. "Petrohawk's operating staff has achieved these efficiencies early in the development of these plays with great success. Additionally, we are keeping pace with infrastructure requirements as we continue to work marketing channels to sell gas at the best available prices.

"We continue to be fiscally conservative, expanding our portfolio of hedges into 2011. Based on the combined effect of strong quarterly performance and positive hedge positions, we stand in an excellent position to continue our exciting pace of production and reserve growth."

During the quarter, the Company generated cash flow from operations before changes in working capital of $140 million, or $0.50 per fully diluted common share (cash flow from operations before changes in working capital is a non-GAAP financial measure; see Condensed Consolidated Statements of Cash Flows in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009 for a reconciliation to net cash provided by operating activities). Second quarter revenues were $325 million, including a realized cash derivative gain of $98 million. During the second quarter, Petrohawk gained $2.34 per Mcf from hedging, bringing realized natural gas prices to $5.62 per Mcf. The Company also gained $2.92 per barrel from its hedging program during the quarter, bringing realized oil prices to $56.64 per barrel. Before the effect of hedges, Petrohawk realized 94% of NYMEX for its natural gas production and 90% of NYMEX for oil.

After adjusting for the effects of unrealized gains on derivatives, net income for the quarter was $0.10 per fully diluted common share, or $29 million after tax, versus $51 million, or $0.23 per fully diluted common share one year ago (see Selected Item Review and Reconciliation table for additional information). Before excluding selected items, the Company reported a net loss of $22 million, or $0.08 per fully diluted common share, for the quarter.

Cash costs (including lease operating, gathering and transportation, production taxes, workover, general and administrative, and interest expense) were $2.97 per Mcfe for the quarter, a 10% improvement over the prior quarter and 14% over the same period one year ago. Depletion, depreciation and amortization (DD&A) expense, a non-cash item, decreased significantly following ceiling test impairments taken in the first quarter of 2009 and fourth quarter of 2008. Per unit DD&A expense for second quarter of 2009 was $1.92 per Mcfe, a 43% reduction from the same period one year ago. Lease operating expense was $0.43 per Mcfe for the quarter compared to $0.44 per Mcfe in the prior quarter and $0.50 per Mcfe in the same period one year ago.

Acquisition of Additional Acreage in Haynesville Shale and Eagle Ford Shale

Through August 1, 2009, Petrohawk has acquired or committed to acquire additional acreage in key areas of the Haynesville Shale including a prospective area in East Texas (Shelby and Nacogdoches Counties) and under an expanded AMI with EOG Resources in this region. In South Texas, additional leases were acquired in both the Hawkville Field and undisclosed areas outside of Hawkville Field that are prospective for the Eagle Ford Shale. In Northwest Louisiana, the Company has drilled or is in the process of drilling twenty-five wells within sections where acreage has recently been acquired. By year end 2009, Petrohawk expects that it will have drilled wells on approximately 40% of the sections in Northwest Louisiana within which the Company has acquired new acreage in 2009.

Operational Update

During the three months ended June 30, 2009, the Company expended $327 million on drilling, completions, seismic and infrastructure. Expenditures for land were $55 million. The Company participated in the drilling of 30 operated and 102 non-operated wells during the quarter with a success rate of 100%.

Of the average 483 Mmcfe/d produced during the quarter, 186 Mmcfe/d (39%) was produced from the Haynesville Shale, 79 Mmcfe/d (16%) was produced from the Fayetteville Shale, 12 Mmcfe/d (2%) was produced from the Eagle Ford Shale, and 206 Mmcfe/d (43%) was produced from Petrohawk's conventional Cotton Valley operations and other areas. For full year ended December 31, 2008, the Haynesville Shale accounted for 6% of production, the Fayetteville Shale accounted for 16% of production, and the Eagle Ford Shale contributed less than 1% of production.

Based on the positive performance of its drilling program year to date, Petrohawk is increasing its previously stated guidance for 2009 average daily production to between 475 and 485 Mmcfe/d, a 58% increase over 2008. Third quarter 2009 production is expected to average between 495 and 505 Mmcfe/d, and fourth quarter 2009 production is expected to average between 525 and 535 Mmcfe/d. The Company expects to increase average daily production by between 30% and 40% over 2009, while spending approximately the same as 2009, with no amounts budgeted for acquisitions.

Haynesville Shale

During the quarter, the Company drilled a total of 13 operated and 19 non-operated wells in the Haynesville Shale. The initial production rates for the 14 operated wells that were completed during the second quarter wells ranged from 9.8 Mmcfe/d to 22.4 Mmcfe/d. These wells had an average initial production rate of 17.3 Mmcfe/d and an average flowing casing pressure of 6,600 pounds per square inch (psi). All wells were tested on a 24/64" choke with the exception of two that were tested on a 26/64" choke. The average initial production rate for 42 operated Haynesville Shale completions to date, which excludes two wells that were mechanically compromised, is approximately 17.9 Mmcfe/d. Petrohawk utilized 10 horizontal rigs and two pre-drill, or spudder, rigs on average in the Haynesville Shale during the second quarter and exited the quarter with 12 horizontal rigs running.

At the end of the second quarter, 40 Company-operated wells were on production with gross production of approximately 285 Mmcfe/d. After excluding two wells that encountered mechanical issues, the Company had a total of 38 operated wells with at least 30 days of production. The average first 30-day production rate of these 38 wells is 14.2 Mmcfe/d.

Petrohawk continues to experience drilling efficiencies in the play. In the first half of 2009 the spud-to-rig release time averaged 55 days, down from 59 days in the second half of 2008. The second quarter average drilling days, excluding two wells that encountered unusually difficult drilling conditions, was just over 46 days. Days from rig release to first sales decreased from approximately 31 days in the fourth quarter 2008 to approximately 16 days in the second quarter 2009. With the ongoing benefit of the decrease in drilling days, the various operational efficiencies being achieved, and the continued effect of service cost reductions, the forecast for drilling and completion costs in the second half 2009 ranges between $8.5-$9.5 million per well.

The Company is constantly working to improve its drilling and completion operations and efficiencies. Petrohawk is currently evaluating 1) increasing the length of each frac stage and the number of perforation clusters/stage while keeping the number of perforations constant; 2) increasing the volume of proppant per foot of lateral; 3) utilizing various proportions of 40/70 Ottawa sand along with 40/70 Premium Resin Coated sand, 4) using 40/80 Hydroprop on an increasing number of wells and 5) increasing proppant concentration. While some time will be required to ascertain results, early data points to opportunities to improve both cost and performance, as well as to modifications that could potentially result in an even more effective completion procedure for Haynesville Shale wells.

To aid its drilling plans and acreage assessment, Petrohawk has completed a field-wide geologic mapping project which incorporates nearly 300 digital open hole logs that have penetrated the Haynesville Shale across the play. A wide variety of maps have been generated, with the most significant maps plotting gas filled porosity and clay content as a percent of the net pay zone. These maps indicate that a large area in northwest Louisiana appears to contain the thickest and potentially most productive Haynesville Shale section. Petrohawk currently controls approximately 325,000 net acres in the play. Based on geologic study and well results, Petrohawk believes its acreage position is concentrated within the core of the Haynesville Shale play.