Petrohawk Energy Corporation today announced that it plans to sell the Company’s Gulf Coast division, and will concentrate its efforts on developing and expanding its significant base of Mid-Continent natural gas resource-style activities, including tight-gas development in North Louisiana and East Texas and in the Fayetteville and Woodford Shales. The Company believes its recently announced plans to form a Master Limited Partnership will complement these initiatives, which reflect management’s ongoing strategy to optimize its portfolio towards long-lived, low-cost, and repeatable natural gas drilling opportunities.

Fayetteville Shale Acquisition

Petrohawk has signed a definitive agreement to acquire approximately 32,500 net acres in the Fayetteville Shale, primarily in Van Buren County, Arkansas, nearly quadrupling the Company’s holdings in that play. The Company expects to close the transaction during the third quarter 2007. At closing, Petrohawk would hold approximately 43,400 net acres in the play. The Company is actively pursuing additional acreage in the Fayetteville Shale and has additional potential acquisitions in various stages of evaluation and negotiation.

Other Mid-Continent Acquisitions

Petrohawk has also acquired additional interests and acreage in both the Elm Grove and Terryville fields, its two highest producing tight-gas fields in north Louisiana. The acquisitions at Elm Grove involve additional interest in more than 10,000 acres and additional interest in approximately 3,000 at Terryville field. The program to acquire additional interests and acreage in both of these key fields is ongoing.

Petrohawk employs a strategy in this region that involves acquiring underdeveloped properties and acreage, maintaining a high level of operational control, optimizing stimulation techniques, and accelerating drilling to improve the present value of long-lived natural gas fields. The Company currently holds significant acreage in the Cotton Valley, James Lime, Fayetteville and Woodford Shale trends within its Mid-Continent region. Proved reserves in the Mid-Continent region as of December 31, 2006 were 663 Bcfe, 95% natural gas, with probable and possible reserves of over 2 Tcfe. During 2007, the Company plans to drill approximately 316 wells in this region.

Planned Sale of Gulf Coast Division

The Gulf Coast division includes a substantial inventory of exploration and development projects. Petrohawk’s properties in the Gulf Coast are primarily Company-operated and were producing approximately 105 Mmcfe/d at June 1, 2007. This division is active with eight rigs currently drilling and a 2007 capital budget of approximately $200 million. Year to date, 38 wells have been drilled in the Gulf Coast region with a success rate of 86%. The sale process for the Gulf Coast division is expected to begin during the third quarter of 2007. Merrill Lynch Petrie Divestiture Advisors has been engaged to assist in the sales effort.

“Our Gulf Coast division has been an excellent performer for Petrohawk,” said Floyd C. Wilson, Chairman, President and CEO. “We have built a highly successful drilling program there, bolstered by an extensive library of 3D surveys, joint ventures with quality partners, and we have a large inventory of 3D-based drilling prospects in the Wilcox, Vicksburg and Frio trends. In late 2006, we announced three major discoveries — the Nabors, Colson and Winchester fields — and additional exploration prospects are being evaluated with the 2007 drilling program.

“The proceeds from the divestment of our Gulf Coast division will significantly strengthen our balance sheet, and allow us to continue to grow our already strong position in tight gas development areas. Today’s announcement to increase our position in the Fayetteville Shale and North Louisiana are important steps in that direction.”

Petrohawk will hold a conference call today at 9:00 a.m. Central Daylight Time (10:00 a.m. Eastern Daylight Time) to discuss this announcement. To access, dial 800-644-8607 five to ten minutes before the call begins. Please reference Petrohawk Energy Conference ID 4908692. International callers may also participate by dialing 706-679-8184. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until July 16, 2007. To access the replay, please dial 800-642-1687 and reference conference ID 4908692. International callers may listen to a playback by dialing 706-645-9291.

Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of oil and gas, with properties concentrated in the Mid-Continent, Gulf Coast and Permian regions.

For more information contact Joan Dunlap, Vice President - Investor Relations, at (832) 204-2737 or jdunlap@petrohawk.com. For additional information about Petrohawk, please visit our website at www.petrohawk.com.

Additional Information for Investors

This press release contains forward-looking information regarding Petrohawk that is intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon Petrohawk’s current expectations and include statements regarding potential acquisitions and divestitures, estimates of future production, future results of operations, the quality and nature of assets or properties, information regarding the formation and operation of a master limited partnership and the anticipated size or timing of an offering of limited partnership units thereof, as well as Petrohawk’s future plans. Forward-looking statements may often, but not always, be identified by words such as “expects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or through statements that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks, risks related to weather, such as hurricanes, and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Petrohawk’s operations or financial results are included in Petrohawk’s other reports on file with the SEC. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Petrohawk does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.

Cautionary Note to US Investors - The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Petrohawk uses the terms “probable” and “possible” reserves in this press release, terms that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Probable reserves are unproved reserves which are more likely than not to be recoverable. Possible reserves are unproved reserves which are less likely to be recoverable than probable reserves. Estimates of probable and possible reserves which may potentially be recoverable through additional drilling or recovery techniques are by their nature much more uncertain than estimates of proved reserves and accordingly are subject to substantially greater risk of not actually being realized by the Company. U.S. investors are urged to consider closely the disclosures in our Form 10-K for the year ended December 31, 2006, as amended, relating to proved reserves and the risks associated with reserve estimates. A copy of such Form 10-K is also available through the Investors Relations section of our website and by contacting Joan Dunlap, Vice President - Investor Relations at the address and phone number above.

Contact:

Petrohawk Energy Corporation
Joan Dunlap, 832-204-2737
Vice President - Investor Relations
jdunlap@petrohawk.com
or
www.petrohawk.com

Source: Petrohawk Energy Corporation