In a US$15.1 billion deal, BHP Billiton will acquire Petrohawk Energy shares for US$12.1 billion and assume $3 billion in Petrohawk debt. This deal follows BHP's prior acquisition of Chesapeake's Fayetteville shale operations at a cost of US$4.75 billion. The combined effect of these two transactions is to establish North American unconventional gas as a key driver of future BHP Billiton growth.
With operations concentrated in the much coveted Eagle Ford and Haynesville plays, estimated net production of 950 Mmcfe/d, and proved reserves of 3.4 Tcfe, the transaction has been made at a per acre cost of US$15,100. This places the deal in the 80th percentile of a sample of 21 Eagle Ford deals made in 2010 and 2011 and roughly comparable to prior transaction values in the Haynesville.