AADE Symposium 2010 Eagle Ford Shale Overview

Presented by Morgan P. OBrien Drilling Manager Western Region January 20, 2010

EAGLEFORDSHALE THEWORDISOUT STXISHOT

Forward Looking Statements

ThiscommunicationcontainsforwardlookinginformationregardingPetrohawkthatisintendedtobecoveredbythesafeharbor"forwardlookingstatements"providedbyofthePrivateSecurities LitigationReformActof1995.ForwardlookingstatementsarebasedonPetrohawk'scurrentexpectations beliefs,plans,objectives,assumptionsandstrategies.Forwardlookingstatementsoften, butnotalways,canbeidentifiedbyusingwordssuchas"expects","anticipates","plans","estimates","potential","possible","probable",or"intends",orwherePetrohawkstatesthatcertainactions, eventsorresults"may","will","should",or"could"betaken,occurorbeachieved.Statementsconcerningoilandgasreserves alsomaybedeemedtobeforwardlookingstatementsinthatthey reflectestimatesbasedoncertainassumptionsthattheresourcesinvolvedcanbeeconomicallyexploited.Forwardlookingstatementsarebasedoncurrentexpectations,estimatesandprojections thatinvolveanumberofrisksanduncertainties,whichcouldcauseactualresultstodiffermateriallyfromthosereflectedinthestatements.Theserisksinclude,butarenotlimitedto:the risksofthe oilandgasindustry(forexample,operationalrisksinexploringfor,developingandproducingcrudeoilandnaturalgas;risks anduncertaintiesinvolvinggeologyofoilandgasdeposits;the uncertaintyofreserveestimates;theuncertaintyofestimatesandprojectionsrelatingtofutureproduction,costsandexpenses;potentialdelaysorchangesinplanswithrespecttoexplorationor developmentprojectsorcapitalexpenditures;health,safetyand environmentalrisksandrisksrelatedtoweathersuchashurricanesandothernaturaldisasters);uncertaintiesastotheavailability andcostoffinancing;fluctuationsinoilandgasprices;risks associatedwithderivativepositions;inabilitytorealizeexpectedvaluefromacquisitions,inabilityofourmanagementteamtoexecuteits planstomeetitsgoals,shortagesofdrillingequipment,oilfieldpersonnelandservices,unavailabilityofgatheringsystems, pipelinesandprocessingfacilitiesandthepossibilitythatgovernment policiesmaychangeorgovernmentalapprovalsmaybedelayedorwithheld.AdditionalinformationontheseandotherfactorswhichcouldaffectPetrohawk'soperationsorfinancialresultsare includedinPetrohawk'sreportsonfilewiththeSEC.Investors arecautionedthatanyforwardlookingstatementsarenotguaranteesoffutureperformanceandactualresultsordevelopmentsmay differmateriallyfromtheprojectionsintheforwardlookingstatements.Forwardlookingstatementsarebasedontheestimatesandopinionsofmanagementatthetimethestatementsaremade. Petrohawkdoesnotassumeanyobligationtoupdateforwardlookingstatementsshouldcircumstancesormanagement'sestimatesoropinionschange. TheSECgenerallypermitsoilandgascompanies,infilingsmade withtheSEC,todiscloseonlyprovedreserves,whicharereserveestimatesthatgeologicalandengineeringdatademonstratewith reasonablecertaintytoberecoverableinfutureyearsfromknownreservoirsunderexistingeconomicandoperatingconditions.Inthiscommunication,weusetheterm"resourcepotential"which theSECguidelinesprohibitfrombeingincludedinfilingswiththeSEC."Resourcepotential"referstotheCompany'sinternalestimatesofhydrocarbonquantitiesthatmaybepotentiallydiscovered throughexploratorydrillingorrecoveredwithadditionaldrillingorrecoverytechniques.Resourcepotentialmaynotconstitute reserveswithinthemeaningoftheSocietyofPetroleumEngineer's PetroleumResourceManagementSystemorproposedSECrulesanddoesnotincludeanyprovedreserves.Areawideresourcepotentialhasbeenriskedusingariskfactorselectedbythe Company'smanagement.ActualquantitiesthatmaybeultimatelyrecoveredfromtheCompany'sinterestswilldiffersubstantially.Factorsaffectingultimaterecoveryincludethescopeofour ongoingdrillingprogram,whichwillbedirectlyaffectedbythe availabilityofcapital,drillingandproductioncosts,availabilityofdrillingservicesandequipment,drillingresults,leaseexpirations, transportationconstraints,regulatoryapprovalsandotherfactors;andactualdrillingresults,includinggeologicalandmechanicalfactorsaffectingrecoveryrates.Estimatesofresourcepotential maychangesignificantlyasdevelopmentoftheCompany'sresourceplaysprovidesadditionaldata.Inaddition,ourproductionforecastsandexpectationsforfutureperiodsaredependantupon manyassumptions,includingestimatesofproductiondeclineratesfromexistingwellsandtheundertakingandoutcomeoffuturedrillingactivity,whichmaybeaffectedbysignificantcommodity pricedeclinesordrillingcostincreases.

TheHKGrowthEngine
HKs assets are concentrated in four premier U.S. shales with decades of future development

Fayetteville Shale
~157,000 net acres 2,500+ net drilling locations (2) 173 Bcfe Proved 2008 Reserves (1) 1.5 Tcfe Resource Potential (2)

Haynesville Shale
~345,000 net acres 4,200+ net drilling locations (2) 163 Bcfe Proved 2008 Reserves (1) 15.7 Tcfe Resource Potential (2)

Bossier Shale

~122,000 net acres 1,500+ net drilling locations (2) 4.1 Tcfe Resource Potential (2)

Eagle Ford Shale

~225,000 net acres 2,700+ net drilling locations (2) 1 Bcfe Proved 2008 Reserves (1) 8.9 Tcfe Resource Potential (2)

(1) (2)

Proved reserves based on year end product prices at 12/31/08 of $5.71 per Mmbtu of natural gas and $41.00 per Bbl of oil. Current Petrohawk net unrisked estimates.

StrongProductionGrowth
Haynesville Shale becoming the dominant part of our production profile, Eagle Ford Shale emerging with compelling F&D costs, Fayetteville Shale continues to be an important building block

Quarterly Production

Annual Production

Regional Production
(Q3 2009)

+43% pro forma

+75% pro forma

2010DrillingBudget
$1.45 billion drilling budget focuses on shale gas resources 2010 Capex by Region

(1)

2010 Avg. # of Op. Rigs 2010 Wells Planned: # Operated # Non-Operated

17

4.5

112 207

60 22

21 355

29 52

*Excludes budget for Hawk Field Services. Acquisitions are not budgeted. (1) Includes conventional drilling in North Louisiana

EagleFordShale:TargetingWithinthe Trend net acres under ~225,000

lease / 2,700 net risked locations Avg. leasehold cost ~$400/acre Operated, 90% working interest

Est. EUR of 5-6 Bcfe / Well (1) Estimated 2H 2009 well cost of $4.5 - $5.0 million Average IP for 16 HK wells completed to date is 8.7 Mmcfe/d
Petrohawk Acreage

Equivalent to 10.0 Mmcfe/d at 15:1 RevEquiv

Drilling pace not pressured by short primary term leases Most leases contain continuous drilling clauses after primary term

Major cost reductions accomplished, well stimulation optimization just getting started
(1) Current Petrohawk gross estimate.

EagleFordShale:ActivityMap
McMullen County LaSalle County Area of Newly Acquired Acreage

eas Incr

te Y nsa e ond gC n

ield

Drilling Completed or WOC 8

IntroducingRedHawk
EagleFordShaleprospectat~5000 Thicknessof80 to120 netporosity ~$4milliontotalcommittedinvestmenttodate FirstwelltospudinDecember2009

Red Hawk: 89,000 net acres

Hawkville: 225,000 net acres

Rock Quality: Haynesville and Eagle Ford Scorecard

Haynesville
Depth Ranges Max Gross Thickness Max Net Thickness Gas in Place / Section (Bcfe) Mean Reserve / Well (Bcfe) Pressure Gradient (PSI/FT) Permeability (nanodarcies) Total Porosity (%) Gas Filled Porosity (%) Gas Saturation (%) Total Organic Content (TOC %) Carbonate/Silica Content (%)
Source: Petrohawk internal estimates. (1) Gross estimate subject to recovery factor. (2) Gross Petrohawk gross estimates. (1)

EGP #63

Dora Martin #1H

Eagle Ford

10,500'-13,500' ~225' ~215' 150 - 170 7.5 0.85 658 12.0 9.0 75 3.1 ~50

11,000-12,000' 250' 250' 180 to 210 5.5 0.65

, 1100

(2)

11.0 9.0 85 4.5 ~70

DRILLINGOVERVIEW EAGLEFORDSHALE MCMULLEN/LASALLECOUNTIES SOUTHTEXAS

HawkvilleField
28wellsdrilled AverageMD15,605 AverageTVD11,414 Averagelandedlaterallength4,400 6wellswithintermediatecasing 22wellswithoutintermediatecasing Record 14.6daysspud/16,490 MD

Days Drilling

Hawkville

CostComparison SpudtoRigRelease

Daysvs.DepthAllNonPilotHoleWells

OriginalWellPlan
103/4 casing@2000 TCEQ BaseofCarrizo@4000 5500 97/8 PilotHolewithCoresto11,200 TVD Plugbackandsidetrackwith97/8 bit Set75/8 casing@45 inclination CementsurfacesandsthroughDVTool Displacewith11.0ppgOBM CurvePlan 8/100 to45;10/100 land

OriginalWellPlan

RevisedWellPlan
103/4 casing@TCEQrequireddepth Displacewith11.0ppgOBM 97/8 holeto200 aboveKOPandlogwell 75/8 casingonlyifnecessary Slimholesizedownto63/4 PilotHolesarerare

RevisedWellPlan

DirectionalPlan Curve
Kickoffopenholewhipstock ifplugback Buildrate810degrees/100 63/4 7blade3/8 cutterPDC 1.83degreeadjustablebenthousingmotor 5.4stage,5/6lobe,1.0rev/gal,5 BtoB 61/2 nearbitstabilizer 20jts 4 DP,51jts 4 HWDP,24joints5 DP Buildinginlimestone

TargetManagement
AdjustKOPfromopenholelog Usepsuedo tangets incurveplan Sectionexpansionandfaults AttempttotopEagleford at4550degrees Resume810degree/100 buildrate TripforlateralBHAwhenROPslows Targetwindow40 Targetlineinthecenter E/Wvariance150 eitherway

DirectionalPlan Lateral
63/4 5and6blade1/2 cutterPDC 1.83degreeadjustablebenthousingmotor 3.8stage,7/8lobe,0.5&1.0rev/gal,5.5 B/B 63/8 nearbitandsteerablestabilizer 4 DPtoTDwellinonerun Remembertapereddrillstring5 x4

DrillingPractices
11.2ppg atlogpoint,12.5ppg TD Set75/8 atanytimeifnecessary 250GPMand70RPMwhilerotating Lettheholetalktous Cleanupcyclewhenappropriate Cleanupcycle/wipertriptoverticalatTD CirculateBU,POOHrackbacktovertical BringcementhightorecoverOBM

FutureConsiderations
Paddrilling Longerlaterals6,000 7,000 ormoreVS Rotarysteerable 83/4 holeinsteadof63/4 hole 5 casingalltheway