Houston-based Petrohawk Energy Corp. said Dec. 23 it has completed the sale of its natural gas assets in the Fayetteville Shale, located primarily in Cleburne and Van Buren Counties, Arkansas, to XTO Energy Inc., a subsidiary of ExxonMobil, for $575 million. The sale has an effective date of Oct. 1, 2010.

In addition, Petrohawk has entered into a definitive agreement with XTO Energy to sell its midstream assets in the Fayetteville Shale for $75 million. The portion of the transaction involving the midstream assets is expected to close in early 2011 and is subject to regulatory approval and customary closing conditions.

As of Dec. 31, 2009, Petrohawk had estimated proved reserves in the Fayetteville Shale of approximately 299 bcf of natural gas. Current production is approximately 98 MMcfe per day. Petrohawk remains a major player in the Haynesville Shale in northern Louisiana and the Eagle Ford Shale in South Texas.

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