Petrohawk will also fund approximately $13 million of capital expenditures on Swift Energy's behalf within the first 12 months of the joint venture. If any portion of this amount is not expended during the first 12 months, it will be paid to Swift Energy as cash consideration.

Swift Energy retains a 50% interest in the joint venture that calls for joint development of this approximate 26,000 acre prospect area located in Swift Energy's AWP field and covers leasehold interests beneath the Olmos formation (including the Eagle Ford Shale formation) extending to the base of the Pearsall formation.

Petrohawk will serve as operator during the drilling and completion phase of the joint development, and Swift Energy will operate the wells drilled once they have entered the production phase, subject to terms of the agreement.

Terry Swift, CEO of Swift Energy, said: "We have found an excellent partner to jointly develop with us a portion of our highly prospective Eagle Ford shale acreage. Petrohawk is one of the leaders in developing natural gas from shale formations responsibly, efficiently and cost effectively.

"Their technical and commercial expertise has already produced strong operational results in the Eagle Ford Shale, making Petrohawk an excellent choice as a partner for this project."

A service of YellowBrix, Inc.