BHP Billiton Completes Petrohawk Acquisition

- BHP Billiton Completes Petrohawk Acquisition

Friday, August 26, 2011
BHP Billiton plc

BHP Billiton has completed its acquisition of Petrohawk through a short-form merger under Delaware law of its wholly owned subsidiary with and into Petrohawk, with Petrohawk being the surviving corporation as a wholly owned subsidiary of BHP Billiton. The merger was the final step of the acquisition process and follows the previously announced completion of the tender offer by BHP Billiton to acquire all outstanding shares of common stock of Petrohawk.

BHP Billiton Petroleum Chief Executive, J. Michael Yeager, said the Petrohawk acquisition adds high-quality growth to the company.

"With the completion of this transaction, BHP Billiton Petroleum is on track to deliver compound annual growth in production volumes of ten percent for the remainder of the decade. We are excited that Petrohawk's sizable U.S. workforce is joining our talented group of professionals and we are ready to grow this business over the long-term."

Petrohawk has requested the New York Stock Exchange to take the necessary steps with the U.S. Securities and Exchange Commission to delist Petrohawk's common stock from the NYSE.

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BHP Billiton-Petrohawk Deal Gets Final Nod

- BHP Billiton-Petrohawk Deal Gets Final Nod

Thursday, August 18, 2011
BHP Billiton plc

BHP Billiton and Petrohawk announced that on August 17, 2011, BHP Billiton and Petrohawk received notice from the Committee on Foreign Investment in the U.S. (CFIUS) that CFIUS has concluded that there are no national security issues of concern in relation to the transactions contemplated by the merger agreement between BHP Billiton and Petrohawk, including BHP Billiton's tender offer for all of the issued and outstanding shares of common stock of Petrohawk for US $38.75 per share in cash. As previously announced, on July 22, 2011, BHP Billiton and Petrohawk received notice from the U.S. Federal Trade Commission of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in relation to the tender offer. Accordingly, all regulatory approvals conditions to the tender offer have been satisfied.

The documents related to the tender offer have been filed with the U.S. Securities and Exchange Commission (the SEC). As previously announced, the tender offer has been unanimously recommended by the Petrohawk board of directors and is being made pursuant to the merger agreement between BHP Billiton and Petrohawk. The tender offer is scheduled to expire at midnight, New York City time, at the end of Friday, August 19, 2011, unless the tender offer is extended or earlier terminated in accordance with the rules and regulations of the SEC and the merger agreement.

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BHP Billiton, Petrohawk Terminate Waiting Period

- BHP Billiton, Petrohawk Terminate Waiting Period

Monday, July 25, 2011
BHP Billiton plc

BHP Billiton and Petrohawk announced that on July 22, 2011, BHP Billiton and Petrohawk received notice from the U.S. Federal Trade Commission of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in relation to BHP Billiton’s tender offer for all of the issued and outstanding shares of common stock of Petrohawk for $38.75 per share in cash.

The documents related to the tender offer are being filed with the SEC today. As previously announced, the tender offer has been unanimously recommended by the Petrohawk board of directors and is being made pursuant to the merger agreement between BHP Billiton and Petrohawk. The tender offer is scheduled to expire at midnight, New York City time, at the end of Friday, 19 August 2011, unless the tender offer is extended or earlier terminated in accordance with the rules and regulations of the United States Securities and Exchange Commission (SEC) and the merger agreement.

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BHP Billiton Bids High to Extend US Shale Footprint

- BHP Billiton Bids High to Extend US Shale Footprint

Friday, July 15, 2011
BHP Billiton plc

BHP Billiton and Petrohawk have entered into a definitive agreement for BHP Billiton to acquire Petrohawk for US $38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk, representing a total equity value of approximately US $12.1 billion and a total enterprise value of approximately US $15.1 billion, including the assumption of net debt. The Petrohawk board of directors has unanimously recommended to Petrohawk shareholders that they accept the offer.

The transaction would provide BHP Billiton with operated positions in the three world class resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin. Petrohawk's assets cover approximately 1,000,000 net acres in Texas and Louisiana, with estimated 2011 net production of approximately 950 million cubic feet equivalent per day (MMcfe/d), or 158 thousand barrels of oil equivalent per day (Mboe/d). At year-end 2010, Petrohawk reported proved reserves of 3.4 trillion cubic feet of natural gas equivalent (Tcfe). The company has a current non-proved resources base of 32 Tcfe for a total risked resource base of 35 Tcfe. Petrohawk reported gross assets of US $8.2 billion as at 31 March 2011 and US $390 million of profit before tax for the year ended 31 December 2010.

BHP Billiton CEO, Marius Kloppers, said the acquisition was a natural fit with BHP Billiton's strategy.

"The proposed acquisition of Petrohawk is consistent with our well defined, upstream, Tier 1 strategy and provides us with even greater exposure to the world's largest energy market, while also broadening our geographic and customer spread. Importantly, our offer and the associated substantial premium represent a unique opportunity for Petrohawk shareholders and recognize the growth opportunities embedded in its portfolio immediately.”

BHP Billiton Petroleum Chief Executive, J. Michael Yeager, said the Petrohawk acquisition would add high quality growth to the company.

"Petrohawk has a focused portfolio of three world class onshore natural gas and liquids rich shale assets. With over a decade of significant investment and volume growth ahead, this transaction would build on our recent acquisition of the Fayetteville shale in Arkansas and provides the potential to more than double our existing resource base. Following completion of the Petrohawk transaction, BHP Billiton Petroleum will be on track to deliver a compound annual production growth rate of more than 10 per cent for the remainder of the decade as we accelerate our shale development program and leverage our strategic capability in the deep water.

"Importantly, BHP Billiton would retain Petrohawk's sizable U.S. based workforce, which has been at the forefront of the technological innovation that brought about the economic viability of U.S. shales. We look forward to extending our dedication to safeguarding the environment and the communities where we operate and continuing our commitment to safe and responsible operating practices across all of our shale gas plays, including the world-class assets that Petrohawk would bring to our portfolio."

Petrohawk CEO, Floyd Wilson, stated, "We believe these premium oil and natural gas assets would benefit significantly by residing within a larger entity that can employ more capital intensity to accelerate their realized value. We are excited to see this transaction completed and to be part of the BHP Billiton organization."

The tender offer is expected to commence by July 25, 2011. The acquisition is subject to the terms and conditions set forth in the merger agreement, including a condition that at least a majority of the outstanding Petrohawk shares are tendered, that the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has expired or been terminated and that clearance is obtained from the Committee on Foreign Investment in the United States, and other customary conditions. If the tender offer is completed, un-tendered shares of Petrohawk will be converted into the right to receive the same US $38.75 per share price paid in the tender offer. The transaction is to be financed from existing cash resources and a new credit facility and is not subject to any financing contingency. The transaction is expected to close in the third quarter of 2011.

BHP Billiton has engaged Barclays Capital and Scotia Waterous as financial advisors in connection with this Offer. Its legal advisors are Sullivan & Cromwell LLP and Morgan, Lewis & Bockius LLP in the United States. Barclays Capital will act as Dealer Manager for the offer. Petrohawk has engaged Goldman Sachs as its financial advisor in connection to this Offer. Its legal advisor is Simpson Thacher & Bartlett LLP.

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BHP Billiton Acquires Petrohawk Energy

- BHP Billiton Acquires Petrohawk Energy



Jul 15, 2011

BHP Billiton (NYSE:BHP) has agreed to buy Petrohawk Energy (NYSE:HK) for around $12.1 billion in cash, making it the biggest acquisition by the company. The company plans to pay $38.75 a share using cash and debt according to a statement by the company today.

Jason Teh, Fund Manager at Investors Mutual said, "BHP wants to increase the scale of its oil and gas business given that most of its existing energy assets are mature. This acquisition nearly doubles BHP's resource base."

BHP Billiton has a potential upside of 17.4% based on a current price of $92.28 and an average consensus analyst price target of $108.3.

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Rolling Strikes to Begin At BHP Billiton Mine Tonight

- Rolling Strikes to Begin At BHP Billiton Mine Tonight



Jun 24, 2011

Rolling strikes will begin hitting BHP Billiton Ltd (NYSE:BHP) late Friday, beginning in its Blackwater coking coal mine in northeastern Australia, which it co-owns with Mitsubishi Corp.

The strikes are then planned move on to six other mines over the weekend and into next week, a union official said.

The strikes are being conducted by the Construction, Forestry, Mining and Energy Union, which is one of three unions representing more than 3,000 workers involved in contract talks with the BHP-Mitsubishi Alliance.

Earlier this month a series of six-hour strikers was conducted by workers at six mines in Queensland. The workers are demanding equal pay for contract workers and employees and a say by union reps in recruitment, among other things.

BHP Billiton has a potential upside of 22.5% based on a current price of $88.38 and an average consensus analyst price target of $108.3.

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BHP Billiton First to Start Up Taps in GOM since Moratorium

- BHP Billiton First to Start Up Taps in GOM since Moratorium

Tuesday, June 07, 2011
BHP Billiton plc

BHP Billiton Petroleum announced that it is the first company in the deepwater Gulf of Mexico to bring a newly drilled well into production since the moratorium was enacted in May 2010. The well was brought into production on May 30, 2011 on the BHP Billiton operated Shenzi field.

The SB-201 well was drilled to a total measured depth of 25,126 feet and is currently producing approximately 17,000 barrels of oil per day. This is the eleventh producing well within the Shenzi field and our ongoing development program will ensure that this operated tension-leg platform (TLP) remains a significant contributor to BHP Billiton's high value, Gulf of Mexico production.

BHP Billiton Petroleum Chief Executive, J. Michael Yeager, said, "We are pleased to be able to demonstrate that deepwater drilling and production can resume in a safe and reliable manner. Our organization has worked very hard over the past several months with regulators to have the ability to resume drilling operations and add new production to our deepwater Gulf of Mexico portfolio."

BHP Billiton Petroleum also received approval and began drilling a second deepwater production well (SB-101) on the Shenzi field on June 2, 2011.

The Shenzi facility is located approximately 120 miles (195 kilometers) off the Louisiana coastline and is installed in approximately 4,300 feet (1,300 meters) of water on Green Canyon Block 653, making it the second deepest TLP in the world. The overall field comprises four blocks: Green Canyon 609, 610, 653 and 654.

BHP Billiton Petroleum is the operator with 44 percent equity. Joint interest participants are Hess Corporation and Repsol, each with 28 percent equity.

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BHP Billiton Pre-Empts WA-351-P Sale

- BHP Billiton Pre-Empts WA-351-P Sale

Thursday, June 02, 2011
Tap Oil Ltd.

Tap Oil announced on May 4, 2011 that it had agreed to sell its 25% interest in WA-351-P, offshore Carnarvon Basin, Western Australia, to Japan Australia LNG (MIMI) Pty Ltd (MIMI) for a cash consideration of US $30,154,000. In addition, MIMI were to pay Tap's 20% share of the next exploration well in the permit up to a cap of US $10 million (Tap share).

BHP Billiton Petroleum (North West Shelf) Pty Ltd, Tap's existing joint venture partner, has today given notice to Tap to exercise its right of pre-emption to acquire the 25% interest in WA-351-P on the same terms and conditions as agreed upon with MIMI.

Tap's Managing Director/CEO Troy Hayden said, "BHP Billiton pre-empting the MIMI transaction provides further evidence as to the value of this highly prospective permit.

"We are looking forward to working with BHP Billiton to drill the Tallaganda prospect as soon as possible, which at this stage we expect may be drilled sometime in the first half of 2012."

Prospectivity of WA-351-P

The Operator completed a detailed assessment of the plays, prospects and leads in the permit in 2010 including the 3D seismic acquired in 2008. Over 10 leads and prospects were defined in the Triassic Mungaroo Formation which Tap estimates have a combined estimated mean potential of 2-3 Tcf (gross recoverable) of natural gas. Tap considers that a number of these targets have an estimated probability of success over 50%.

Additional leads have been identified in WA-351-P in the Jurassic and Early Cretaceous, both of which are productive elsewhere in the Carnarvon Basin. Current indications are that this shallower potential is larger but higher risk than the Triassic in this permit. Further work will be done on these objectives.

The high chance of success is reinforced by Hess' reporting of 13 gas discoveries from 16 exploration wells drilled to date in the adjacent WA-390-P permit, immediately north of WA-351-P. Hess has commenced a multi-well appraisal program in WA-390-P.

The proximity of WA-351-P to many large-scale liquefied natural gas (LNG) projects being developed should provide the joint venture with many options for the commercialization of any gas discoveries.

Tallaganda Prospect

The Tallaganda prospect in WA-351-P has been high graded as an attractive prospect and an early drilling candidate. Tallaganda straddles WA-351-P and WA-335-P and has a prospective resource range of 0.8 Tcf to 1.3 Tcf (Mean to P10 recoverable) within WA-351-P.

Strong seismic amplitudes within closure and AVO support in the Tallaganda fault block are indicative of reservoir and gas and the prospect is assessed as having a greater than 50% chance of success.

Under the terms of the exploration license, an exploration well is required to be drilled before June 5, 2013. The Operator has advised that a well on the Tallaganda prospect could spud in 2011 or early 2012.

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BHP Billiton Gets BOEMRE Nod for GOM Drilling

- BHP Billiton Gets BOEMRE Nod for GOM Drilling

Wednesday, June 01, 2011
BOEMRE

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) has approved a drilling permit for the fifteenth deepwater well to comply with rigorous new safety standards implemented in the wake of the Deepwater Horizon explosion and resulting oil spill. This includes satisfying the requirement to demonstrate the capacity to contain a subsea blowout.

The approved permit is for BHP Billiton Petroleum (GOM) Inc. to drill a new development well in Green Canyon Block 653 in 4,232 feet water depth, approximately 120 miles off the Louisiana shoreline, south of Houma. Today's approval is for a new well being drilled under a Development Operations Coordination Document that was approved on May 31, 2011, for which BOEMRE completed a site-specific Environmental Assessment.

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BOEMRE OKs BHP Billiton's GOM Exploration Plan

- BOEMRE OKs BHP Billiton's GOM Exploration Plan

Tuesday, May 17, 2011
BOEMRE

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) announced the approval of an Initial Exploration Plan (EP), submitted by BHP Billiton, Inc., for activities in deepwater Gulf of Mexico. The EP was completed in accordance with new safety and environmental standards implemented since the Deepwater Horizon explosion and oil spill, and is the first deepwater Initial EP approved to include the completion of a thorough site-specific Environmental Assessment (SEA).

BHP Billiton's plan includes one proposed deepwater exploration well in approximately 4,468 feet 124 miles offshore Louisiana. An EP describes all exploration activities planned by the operator for a specific lease or leases, including the timing of these activities, information concerning drilling vessels, the location of each planned well, and other relevant information that needs to meet important safety standards.

BOEMRE prepared the SEA to examine BHP Billiton's proposed exploration activities in accordance with the National Environmental Policy Act (NEPA) and the implementation of departmental and bureau regulations.

The SEA included new scientific information that had not been previously available for consideration or analysis. Based on its review, BOEMRE found no evidence that the proposed action would significantly affect the quality of the environment. Therefore, BOEMRE determined that an Environmental Impact Statement (EIS) was not required and issued a Finding of No Significant Impact, which allowed the Initial EP to be approved.

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BHP Farms into Offshore Palawan Block

BHP Farms into Offshore Palawan Block

Wednesday, May 11, 2011
Otto Energy Ltd.

Otto Energy Ltd announced Wednesday that BHP Billiton has exercised the option to farm-in to Service Contract 55 (SC55).

Subject to joint venture and regulatory approval, BHP Billiton will earn up to 60% participating interest and assume operatorship of the block by reimbursing Otto's past costs and funding one offshore deepwater well by 2012, with an option to drill a second well in a subsequent phase by 2013. Otto Energy will retain a 33.18% interest following BHP Billiton's farm-in.

The farm-in option held by BHP Billiton was granted in January 2010, and Otto has worked over the past 16 months to acquire, process and interpret approximately 1,800 km2 of 3D seismic data in the block.

The extensive 3D seismic data indicates the presence of an active petroleum system coupled with a series of large to very large Nido Carbonate structures that supplement the Hawkeye prospect.

Otto's Managing Director Paul Moore said, "We are looking forward to continuing to work with BHP Billiton in Service Contract 55 as we move into the drilling phase of exploration activities. The past 16 months has been a very busy period for Otto as we have acquired, processed and interpreted a large volume of seismic data to identify a portfolio of significant oil and gas prospects. We have benefited from the co-operation shown by our joint venture partner, Trans-Asia, and also BHP Billiton."

"We now look forward to participating in this exciting offshore deepwater exploration program which will provide exposure for Otto's shareholders to material exploration in highly prospective, large structure opportunities."

Otto will submit the required assignment documents to the joint venture partner and the Philippine Department of Energy for approval of the transfer of participating interest to BHP Billiton.

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Atwood Clutches BHP Contract

Atwood Clutches BHP Contract

Monday, May 09, 2011
Atwood Oceanics, Inc.

Atwood Oceanics, Inc., a Houston-based international offshore drilling contractor, announced that one of its subsidiaries has been awarded a one well contract by BHP Billiton Petroleum PTY LTD, with an estimated duration of 45 days in a water depth of 600 feet.

The day rate for this contract for the first 40 days will be approximately $376,000; thereafter the day rate will increase to approximately $399,000 (both day rates subject to change due to currency exchange provisions in the contract).

With this contract, the firm contractual commitments for the Atwood Eagle will extend through approximately January 2012.

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Technip Wins Contract for BHP's Macedon Project

Technip Wins Contract for BHP's Macedon Project

Wednesday, May 04, 2011
Technip

Technip announced Wednesday that it was awarded a reimbursable contract for the engineering work and services related to procurement and construction management for the Macedon gas project located 17 kilometers of Onslow in North West Australia.

The contract covers the onshore facilities consisting of a gas plant and pipelines works. Technip's operating centers in Perth, Australia and Kuala Lumpur, Malaysia will execute the contract, which is scheduled to be completed in 2013.

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Sector Update: Energy Shares Lower; Crude Futures Slip Under $110 a Barrel

Sector Update: Energy Shares Lower; Crude Futures Slip Under $110 a Barrel



Energy shares are mixed to lower in mid-day trading as crude oil futures slipped throughout the morning to trade under $110 a barrel.

Light, sweet crude oil for May delivery is trading down 2.6% to $109.86 a barrel. In other energy futures, heating oil was down 1.79% to $3.26 a gallon while natural gas was up 1.44% to $4.09 per million British thermal units.

In mid-day energy news, shares of BHP Billiton (BHP) are higher as Bloomberg reports the world's largest mining company squelched speculation that it plans to buy Royal Dutch Shell's stake in Woodside Petroleum.

The Sunday Times reported Sunday that BHP was in talks with Shell, who was being advised by UBS.

BHP shares are up 1.6%, or $1.62, to $102.92.

BHP Billiton Hands Reins to FOGL Offshore Falklands

BHP Billiton Hands Reins to FOGL Offshore Falklands

Thursday, March 31, 2011
Falkland O&G Ltd.
by  SubseaIQ

FOG announced further progress on its rig contract negotiations and certain changes to its license arrangements.

Changes to license arrangements

On March 30, 2011 FOGL signed a binding Heads of Agreement with its joint venture partner, BHP Billiton, that provides for the exit of BHP Billiton from the Northern license area once certain conditions have been satisfied, including approval of the Falkland Islands Government to both the assignment of BHP Billiton's 51% interest and transfer of operatorship to FOGL.

In relation to this withdrawal BHP Billiton will contribute towards the costs of drilling the Loligo well, by placing funds in an escrow account. The funds are to be drawn by FOGL against the costs of drilling the Loligo well. In the event that the Loligo well encounters hydrocarbons, BHP Billiton will have the option to back in to the Loligo development area only, for a maximum 40% non-operating interest in the discovery, in return for making a cash contribution to FOGL's future exploration and appraisal costs. Such a reassignment of interests will also be subject to approval by the Falkland Islands Government.

The settlement with BHP Billiton will, together with other funds available to FOGL, provide FOGL with total cash resources of US $110 million. These cash resources will be sufficient to fund the Loligo well, other exploration expenditures and allow the Company to fulfill the Phase 1 work commitment of the Northern license area.

Operations

Further to its announcement on March 15, the company is close to finalizing a rig contract for its deep water exploration program.

FOGL is also considering additional drilling options. The site survey program is progressing well, with surveys already completed on three locations. FOGL is considering the most appropriate means of financing and advancing these options and is in discussion with several parties that are interested in farming in to its licenses.

Tim Bushell, Chief Executive of FOGL, said, "We are pleased to have made good progress in our rig contract negotiations and to have reached an amicable agreement with our joint venture partner that gives FOGL control over its deepwater exploration program, commencing with the drilling of the Loligo prospect."

BHP First To Resume Drilling GOM Deep-Water Well

BHP First To Resume Drilling GOM Deep-Water Well

Wednesday, March 30, 2011
Dow Jones Newswires

by  Ryan Dezember

BHP Billiton began late Monday drilling a deep-water well in the Gulf of Mexico, the first such work to take place since the U.S. government banned deep-water drilling in response to last year's oil spill, reported the head of the conglomerate's oil and gas business.

Speaking to investors during the Howard Weil Energy Conference here, J. Michael Yeager said that a rig had moved onto its Shenzi prospect and resumed drilling a well there.

"We're back there drilling and we're delighted to be doing that but we're a long way from the five rigs we had when the moratorium hit," Yeager said.

The U.S. government instituted a six-month ban on deep-water drilling after Transocean's Deepwater Horizon, which was being leased by BP, exploded, killing 11 and unleashing the largest offshore oil spill in U.S. history. Even after the government's official ban was lifted in October, no drilling permits were issued by regulators until Feb. 28.

BHP, the third largest producer in the Gulf, was given permission March 11 to resume drilling its well, work that was stalled by the moratorium. The Anglo-Australian conglomerate's permit is one of six U.S. regulators have issued in recent weeks.

Yeager said that the drilling ban stalled work on 11 Gulf of Mexico wells, trimming BHP's expected 2011 output of the equivalent of 165 million barrels of oil per day by 12 million barrels, Yeager said.

"It's been quite devastating but we're very glad to be out there," Yeager said.

Yeager also said that separate U.S. regulators on Tuesday approved BHP's $4.75 billion purchase of Chesapeake's Fayetteville Shale natural gas fields in Arkansas. The largest ever shale asset deal in U.S. history, encompassing 480,000 acres and pipelines, should close on Thursday, Yeager said.

BHP plans to spend between $800 million to $1 billion annually over the next decade to develop the Arkansas fields in an effort to triple production from the equivalent 65,000 barrels of oil per day seen now, Yeager said.

The move into North America, where the gas that is produced is sold domestically in the world's largest natural gas market, helps BHP expand its market, which is currently weighted toward selling to China, Yeager said.

"We have 60% of our assets in Australia sold to China," he said. "That's a risk that we'd like to diversify away from."

Seadrill Scores BHP Duo

Seadrill Scores BHP Duo

Monday, March 28, 2011

Seadrill Ltd.

Seadrill has been awarded two new contracts by BHP Billiton Petroleum for Offshore Vigilant in Trinidad and Offshore Resolute in Vietnam.

The three well drilling assignment for Offshore Vigilant is expected to take 150 days, and the contract value is approximately US $20 million. The two well assignment for Offshore Resolute is expected to take 90 days, and the contract value is approximately US $11 million.

Commencement of operations under the new contract for Offshore Vigilant is scheduled for the third quarter 2011, in direct continuation of existing contract and mid May 2011 for Offshore Resolute. The contract for Offshore Vigilant includes options for an additional four wells with anticipated duration of 200 days.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management, said, "This is Seadrill's first assignment for BHP. We consider this as an excellent opportunity to develop a strong relationship with BHP, one of the world's largest natural resource companies. Representing a total contract value of US$31 million, the two assignments improve the earnings visibility for our jack-ups in 2011 at market rates."