HOUSTON, Feb. 1 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) today announced that its proved oil and gas reserves at December 31, 2009 are estimated at 2.75 trillion cubic feet of natural gas equivalent (Tcfe). Proved reserves increased over 1.5 Tcfe over year end 2008, pro forma for the sale of the Company's Permian Basin properties in October 2009. Proved reserves, pro forma for the sale of the Permian Basin properties, grew 122% year over year. Production, pro forma for the sale of the Permian Basin properties, grew 76% year over year. Petrohawk's estimated proved reserves at December 31, 2009 were prepared by the independent reserve engineering firm Netherland, Sewell and Associates, Inc. in accordance with Securities and Exchange Commission ("SEC") guidelines.

"Petrohawk experienced significant growth during 2009 in both production and reserves thanks to our successful development program and an asset portfolio that was resilient during the year's low price environment for natural gas," said Floyd C. Wilson, Chairman and Chief Executive Officer. "While our growth in proved reserves was impressive, these reserves were booked using SEC guidelines for offset locations, taking into account full-year average pricing and governed by development scheduling criteria of five years or less, and are equally impressive when viewed on historical rules. The results of our 2009 drilling program have a tremendous impact on our net asset value. As never before, the stage is set for an HK multi-year development plan designed to continue to deliver double-digit production and reserve growth with an overarching focus on free cash flow."

The Company increased proved developed reserves by approximately 34% and proved undeveloped reserves by 227%. Petrohawk replaced 920% of production, producing 183 Bcfe in 2009, and divested 171 Bcfe of proved reserves during the year. In 2009, organic finding and development costs excluding land and seismic costs, were the lowest in Petrohawk's history at $0.68 per Mcfe, with $1.15 billion in capital expenditures. For ease of comparison, finding and development costs are categorized in the table below:

 Finding and Development Costs ($/Mcfe)(1) 
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Organic(2)                                                               $0.68 

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All Sources(3)                                                            0.98 

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Organic, excluding price revisions                                        0.59 

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All Sources, excluding price revisions                                    0.85 

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Organic, under previous SEC rules                                         1.32 

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All Sources, under previous SEC rules                                     1.91 

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(1) Pro forma for the divestiture of Permian Basin properties, and excluding 

capital expenditures related to Hawk Field Services  (2) Includes costs 

related to drilling and completions  (3) Includes costs related to drilling, 

completions, land acquisition and seismic activities 

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The Company's new reserves-to-production ratio (R/P, defined as proved reserves of 2.75 Tcfe divided by 2009 pro forma production of 173 Bcfe) is 15.9 years.

Of Petrohawk's 2.75 Tcfe of proved reserves (98% natural gas), approximately 1.96 Tcfe were added through the drillbit in 2009. Approximately 1.5 Tcfe were added in the Haynesville Shale with 176 wells drilled (73 operated and 103 non-operated), 294 Bcfe in the Eagle Ford Shale with 26 wells drilled (24 operated and 2 non-operated), 178 Bcfe in the Fayetteville Shale with 362 wells drilled (35 operated and 327 non-operated), and 18 Bcfe with 62 wells drilled in other areas. Proved reserves are 33% proved developed, compared to 56% proved developed associated with year-end 2008 reserves. Revisions, including pricing-related revisions accounted for a reduction of 277 Bcfe.

 December 31, 2009 Reserve Reconciliation (Bcfe) 
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Beginning Balance 

 December 31, 2008                           1,418 

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Production                                   (183) 

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Additions                                    1,962 

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Purchases                                        1 

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Sales                                        (171) 

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Revisions                                    (277) 

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Ending Balance 

 December 31, 2009                           2,750 

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