Petrohawk Energy Corp., Houston, (NYSE: HSE) has cut its 2009 capital budget % from $1.5 billion to $1 billion and reports it will reallocate spending to development in the Haynesville and Fayetteville shales. Petrohawk chief executive officer Floyd C. Wilson says the company has no plans to access the equity capital markets.

The reallocation of capital is to emphasize Haynesville and Fayetteville projects, with the expectation of greater reserve growth potential, Wilson says. Petrohawk’s production guidance for 2009 represents 25% to 35% drillbit growth over 2008 estimated production of 305 million cubic feet of gas equivalent per day.

To fund 2009 drilling, Petrohawk received an increased credit facility to $1.1 billion from $800 million on Sept. 10. The facility is currently undrawn.

For the third quarter, Petrohawk has reaffirmed its production guidance of between 310- and 320 million cubic feet equivalent per day. The company is also staying with its stated guidance for the year of an average 295- to 315 million cubic feet equivalent per day, a more than 25% organic increase over pro forma 2007 production.

Petrohawk’s properties are in North Louisiana, Arkansas, East Texas, Oklahoma and the Permian Basin. JAS