Goodrich Petroleum's Eagle Ford Capital Budget Increases for 2014

Goodrich Petroleum Eagle Ford Acreage
Goodrich Petroleum Eagle Ford Acreage

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

Goodrich's Eagle Ford Fourth-Quarter 2013 Operations Update

In the fourth-quarter of 2013, the company conducted drilling operations on 4 gross (3 net) wells, of which 1 gross (0.67 net) was in the Eagle Ford.  A total of 7 gross (4.7 net) wells were added to production during the quarter, of which 4 gross (2.7 net) were in the Eagle Ford Shale.

At the end of 2013, Goodrich had 1 rig running in the Eagle Ford. To date, the company has 63 gross (43 net) Eagle Ford wells producting.

Goodrich's Year End Operations Snap Shot

For the year, Goodrich conducted drilling operations on 25 gross (16 net) wells and added 43 gross (24 net) wells to production across it's portfolio, which includes assets in the Tuscaloosa Marine Shale (TMS) and Haynesville Shale.  The wells added to production during the year consisted of 23 gross (15 net) in theEagle Ford Shale.

At the end of 2013, the Eagle Ford represented 16% of the company's proved reserves, while the TMS and Haynesville Shales were 6% and 46% respectively. Look for Goodrich to move aggressively on it's TMS assets in 2014. The company estimates its TMS assets represent 52% of 3P resource potential across the portfolio or 4,460 bcfe (744 mmboe).

Total production was down for the year across the company's portfolio from 85,832 mcfe/d to 76,124 mcfe/d.