Neither the value of the deal nor the exact size of the acreage were revealed.

J-W said the properties were in the Elm Grove and Caspiana fields and included 1,200 wellbores and associated gathering lines and compressor facilities.

"By the addition of approximately 700 active wells that are producing in the Cotton Valley formation, a conventional oil and gas field, the acquisition will result in a significant and immediate increase in production," J-W said.

Tony Meyer, president of the subsidiary J-W Operating Company, said the acquisition fitted perfectly into its existing Elm Grove and Caspiana portfolio and increased its holdings by more than 200 billion cubic feet of proven reserves.

"Our evaluation suggests the potential for horizontal drilling opportunities as well as increased value through rework of the existing infrastructure," he said.

The acquisition did not include any of BHP's unconventional Haynesville shale assets - a point stressed by the diversified miner and petroleum producer.

"BHP Billiton continually assesses its portfolio of petroleum assets with an aim to simplify, improve value and provide sharper strategic focus," a spokesman told Energy News Premium.

"As part of this process, [BHP] Petroleum has divested its conventional gas producing assets in northwest Louisiana. In no way does this reflect our assessment of the value of our Haynesville shale assets, which are among the premier natural gas holdings in the United States."

The Haynesville shale region stretches across southwestern Arkansas, northwest Louisiana, and East Texas.