Houston-based oil and gas company Petrohawk Energy Corp. is selling its Permian Basin properties to a private company for $376 million in cash in order to focus on assets in the Haynesville and Eagle Ford Shales.

"Proceeds from this sale will add to our already-strong liquidity position, as we continue to focus our attention on our rapidly growing shale assets, particularly high-return, high-margin development in the Haynesville and Eagle Ford Shales," said Floyd C. Wilson, chairman and CEO.

As of August 5th, Petrohawk had roughly $552 million in cash, $274 million outstanding on its revolver with a borrowing base of $950 million, and $2.4 billion of other long-term debt.

According to Stephen Berman, senior research analyst at Pritchard Capital Partners, the liquidity enhancement from the sale should help dissipate concern some have over "when is next equity issuance coming" and help drive stock, which has been stuck in a high-teens, mid 20s trading range, higher. Shares of Petrohawk closed at $23.63 Friday on the New York Stock Exchange.

At the end of last year, Petrohawk reported estimated proved reserves of 177 bcfe for the Permian assets. The properties are currently producing roughly 30 MMcfe/d.  The metrics work out to $2.12 Mcfe on proved and ~$12,500/Mcfe of flowing daily production.

Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with the sale.

The sale is expected to close by October 30, 2009.