February 1, 2010 / 4:30 PM / 9 years ago

UPDATE 2-Petrohawk forecasts sequentially higher Q1 production

* Sees Q1 production of 615 to 625 mmcfed

* Reaffirms 2010 production outlook

* Reports higher 2009 production

* Shrs up 4 percent (Adds Denbury, Encore production, updates share movement)

Feb 1 (Reuters) - Independent exploration and production company Petrohawk Energy Corp (HK.N) forecast sequentially higher first-quarter production and reaffirmed its full-year 2010 production outlook, sending its shares up 4 percent.

The company said it expects first-quarter production of 615 million cubic feet equivalent of natural gas per day (mmcfed) to 625 mmcfed, compared with the fourth-quarter production of 598 mmcfed.

It said full-year 2010 outlook remained at 670 mmcfed to 680 mmcfed.

“During 2010 the Company intends to operate 17 rigs and drill between 110 and 120 operated wells,” COO Richard Stoneburner said in a conference call with analysts.

Petrohawk said fourth-quarter production was above the mid point of its previous outlook, helped by increased drilling activity.

The company exited 2009 producing about 600 mmcfed, compared with a pro forma exit rate of 366 Mmcfed in 2008.

Smaller peer Denbury Resources Inc (DNR.N) reported a sequential increase in fourth- quarter total production, while Encore Acquisition Co EAC.N said production rose year over year.

Denbury’s total production rose 5 percent to 44,940 barrels of oil equivalent per day (boed), while estimated average tertiary oil production was about 26,300 barrels per day (bbls/d), an 8 percent sequential rise.

“Our oil and natural gas reserves came in much as expected. Based on our projected development program, we would expect our oil reserve additions to be higher during 2010 and 2011,” company CEO Phil Rykhoek said in a statement.

Encore’s fourth quarterly production was 45,143 boed, compared with 41,824 boed a year earlier.

Shares of Petrohawk rose 4 percent to $23.30 Monday morning on the New York Stock Exchange before paring gains to trade at $22.94.

Denbury shares were trading 5 percent up at $14.22, while Encore shares were trading 2 percent up at $48.53 Monday.

For the alerts, please double click [ID:nWNAB0877] [ID:nWNAB1048] [nWNAB1029] (Reporting by Arup Roychoudhury in Bangalore; Editing by Vinu Pilakkott, Jarshad Kakkrakandy)

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