Haynesville Shale

Petrohawk drilled 28 operated wells in the Haynesville Shale during the quarter, the most the Company has drilled in a single quarter since the onset of Haynesville Shale development. All wells completed during the quarter are being produced under reservoir optimization practices, which not only involve restricting production, but also include optimizing completion techniques that have been continually improved over the past two years. Fourteen were produced on a 14/64" choke with an average IP of 7.7 Mmcfe/d with 8,650 psi flowing casing pressure (FCP), four were produced on a 16/64" choke with an average IP of 10.8 Mmcfe/d with 8,475 psi FCP, and two wells were produced on a 18/64" choke with an average IP of 15.8 Mmcfe/d with 8,005 psi FCP.

In the Haynesville Shale, Petrohawk is focused on meeting its leasehold requirements to hold acreage, gathering data toward optimizing future drilling, completion and production practices, and comparing geologic data with well performance. As previously announced, Petrohawk reduced its Haynesville Shale rig count during the quarter and is currently operating 14 rigs. All rigs running are now AC electric powered, and nearly 90% of wells drilled during the quarter were drilled using closed loop systems - both factors the Company believes will aid in future efficiencies and have a positive impact on the environment. During the second quarter, Petrohawk drilled its fastest well to-date, at 23 days spud to TD (30 days spud to spud). Average spud to spud time was 52 days, impacted by 43% of second quarter wells drilled in deeper or more geologically complex areas of the play and at an average measured depth of approximately 16,900 feet. Wells completed during the quarter utilized various completion formulas, including differing proppant types and volumes as well as varying perforation and cluster spacing.

All existing wells with less than ~2,000 psi FCP have been restricted as well by utilizing more restrictive chokes ranging from an 8/64" to 14/64". The Company believes this practice may improve the EUR of the well and defer the need for field-wide compression.

Lower Bossier Shale

The Lower Bossier Shale trend has experienced a significant increase in activity over the past several months, with a number of operators reporting completions resulting in initial production rates in excess of 20 Mmcfe/d ranging from Red River Parish, Louisiana to Nacogdoches County, Texas.

Petrohawk successfully completed drilling operations on its first Lower Bossier Shale horizontal test during the second quarter. The Whitney 19#1H, located in Sabine Parish, Louisiana in Section 19-T10N-R13W, encountered approximately 210' of high quality net pay in the Lower Bossier Shale. It also encountered approximately 220' of high quality net pay in the Haynesville Shale. The well is scheduled to be fracture stimulated in mid August in the Lower Bossier Shale interval. The Company is currently drilling an offset to the Whitney 19 #1H that will target the Haynesville Shale. The Company is encouraged by recent developments and continues to support its interpretation of the potential productive area of the Lower Bossier Shale trend. Based on the similarity of petrophysical properties between the Haynesville and Lower Bossier Shales, Petrohawk intends to produce its Lower Bossier Shale wells under its reservoir optimization program. Petrohawk currently controls approximately 122,000 net acres in the play.