Goodrich Petroleum Considers Sale of Eagle Ford Assets

Company Slashes Capital Spending in 2015
Goodrich Petroleum Eagle Ford Map

Goodrich Eagle Ford Map | Click to Enlarge

Eagle Ford player Goodrich Petroleum is considering selling all or a portion of its Eagle Ford Shale acreage in the first half of 2015. In early December of 2014, the Houston, TX-based company announced its Board of Directors had authorized management to “explore strategic alternatives” for the assets.

Goodrich, which has invested significantly in the Tuscaloosa Marine Shale (TMS) in South Louisiana and Mississippi, also announced its capex budget for 2015 this month at $150-million – $200-million. That’s much less than the than $375-million budget the company projected in 2014, according to Goodrich’s annual report. Company officials indicate about 95% of Goodrich’s 2015 budget will be earmarked for drilling in the TMS.

Read more: Goodrich Increases 2014 Budget by 50% and is Shifting to Tuscaloosa Marine Shale

Since June of 2014, the price of oil has dropped by nearly 50%, and Goodrich’s pullback on capital investment is a strong indication of the impact of lower crude oil prices on shale oil operators. Company officials indicate a whole or partial sale of its Eagle Ford assets would significantly enhance the company’s flexibility to further expand its development activities under better market conditions.

Goodrich has approximately 45,000 (30,000 net) acres in the Eagle Ford, with an estimated 383 (255 net) un-risked drilling locations remaining, according to company officials. Goodrich entered the Eagle Ford early in 2010, paying approximately $1,650 per acre.

We’ll keep an eye out for any new details about Goodrich’s potential exit from the Eagle Ford. Stay abreast of all EagleFordShale.com updates by subscribing to our newsletter.

Read more at GoodRichPetroleum.com

Goodrich Petroleum’s Eagle Ford Capital Budget Increases for 2014

6 Net Wells to be Drilled in the Eagle Ford in 2014
Goodrich Petroleum Eagle Ford Acreage

Goodrich Petroleum Eagle Ford Acreage | Click to Enlarge

Goodrich Petroleum Corporation plans to spend more in the Eagle Ford Shale in 2014 than previous estimates indicated. The company’s total capital budget remains $375 million for the year; however, the capital budget allotted for the Eagle Ford Shale has been bumped up to $40-million. In October 2013, Goodrich’s capital spending in the Eagle Ford was set closer to $30-million.

Goodrich Petroleum plans to drill 9 gross (6 net) wells in the Eagle Ford this year.

Read more: Goodrich Increases 2014 Budget by 50% & Is Shifting to the Tuscaloosa Marine Shale

[Read more…]

Goodrich Increases 2014 Budget by 50% & Is Shifting to the Tuscaloosa Marine Shale

Eagle Ford Spending Down 70% & TMS Spending Up 400% in 2014
Goodrich Petroleum Eagle Ford and Pearsall Activity Map

Goodrich Petroleum Eagle Ford & Pearsall Activity Map | Click To Enlarge

Goodrich Petroleum will spend 44% or $100 million of the company’s $255 million budget in 2013 in the Eagle Ford. That will change in 2014 when the company will spend just $30 million in the play. [Read more…]

Goodrich Petroleum’s Eagle Ford Drilling Time Down To 10 Days

Thick Pay Zone Allows GDP To Drill Horizontal Lateral Faster
Goodrich Petroleum Eagle Ford and Pearsall Activity Map

Goodrich Petroleum Eagle Ford & Pearsall Activity Map | Click To Enlarge

Goodrich Petroleum has driven its drilling time down to ten days for wells with 6,000 ft laterals. That equates to 13 days from spud to rig release and 20 days spud-to-spud.

That’s almost 60% less than what Goodrich was doing two short years ago. Faster drilling has led to a larger number of drilled, but uncompleted wells. Goodrich now has 9 gross (6 net) wells waiting to be completed. [Read more…]

Goodrich Petroleum Allocates ~65% of 2013 Budget to the Eagle Ford

GDP Will Drill As Many As 28 Operated Wells
Goodrich Petroleum Eagle Ford Map

Goodrich Eagle Ford Map | Click to Enlarge

Goodrich Petroleum has planned for a capital budget of $175-$200 million in 2013. Of that, $115-137 million will be spent to drill 24-28 gross (16-19 net) wells targeting the Eagle Ford. The rest of the company’s budget will be spent between the Haynesville Shale and Tuscaloosa Marine Shale plays.

Production growth will be mute as the company goes full force into its liquids producing plays. Natural gas volumes will decline and oil volumes are expected to roughly offset the decrease. [Read more…]

Goodrich Petroleum Plans Eagle Ford Growth in 2012

Goodrich Petroleum’s Eagle Ford assets will be the beneficiary of $155 million in capital spend on 29 gross (19 net) wells in 2012. The company’s assets are centered in Frio and La Salle counties.

Oil directed activity will be concentrated in the Eagle Ford Shale trend with $155 million allocated to 29 gross (19 net) wells (which assumes a combination of 6,000 to 9,000 foot laterals), and the Tuscaloosa Marine Shale trend, with $20 – $45 million allocated to 4 gross (2 net) to 6 gross (4 net) wells.

[Read more…]

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