Under the terms of the agreement, BHP Billiton will pay $38.75 per share to acquire all the shares of Petrohawak Energy.
With this transaction, BHP Billiton will access three resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin.
Petrohawk’s assets cover about 1,000,000 net acres in Texas and Louisiana, with estimated net production of about 950 million cubic feet equivalent per day (Mmcfe/d) of oil.
BHP Billiton CEO Marius Kloppers said the acquisition was consistent with the firm’s well defined, upstream, Tier 1 strategy and provides them with even greater exposure to the world’s largest energy market.
The transaction, will be financed from existing cash resources and a new credit facility, and is expected to close in the third quarter of 2011.
