Petrohawk Energy (HK) is a new entrant into the Permian Basin and began leasing acreage in the latter part of 2010. The company recently announced the acquisition of 325,000 net acres at a price of $455 million. Petrohawk Energy has allocated $75 million to operate four rigs and drill and complete 15 wells in the Permian basin in 2011.
Petrohawk Energy has acreage in the Midland Basin where the company is targeting the Lower Wolfcamp formation. The Lower Wolfcamp formation is at depth of 8,000 feet and will be completed with laterals up to 5,000 feet at a cost of $7 million.
In the Delaware Basin, the company is working on the Lower Wolfcamp, Bone Springs and Avalon Shale formations. These formations are found at depths ranging from 5,000 to 12,000 feet and produce natural gas along with condensate and natural gas liquids. Wells here cost between $6.5 million and $8 million.