Goodrich Petroleum Considers Sale of Eagle Ford Assets

December 31, 2014 Kirk Eggleston

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.

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.

Goodrich Petroleum's Eagle Ford Capital Budget Increases for 2014

March 19, 2014 Kirk Eggleston

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.

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.

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

October 16, 2013 R.T. Dukes

Goodrich Petroleum Eagle Ford and Pearsall Activity Map

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.

The company plans to spend almost 50% more on development in 2014, but almost 75% or $300 million of the company's $375 million budget will be spent in the Tuscaloosa Marine Shale (TMS).

The Eagle Ford has helped drive an increase in oil production, but Goodrich only controls 45,000 gross (32,000 net) acres in the play. In the TMS, Goodrich controls more than 300,000 net acres across Louisiana and Mississippi. The shear size of the company's position makes the potential much greater.

Read the company's full release regarding its 2014 budget at goodrichpetroleum.com

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

May 23, 2013 R.T. Dukes

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.

The company is behind target on completions due to pad drilling, but now expects to complete 25 gross (16.8 net) wells during the year. That's one more well than planned at the beginning of the year.

Goodrich is spending 58% or $115 million of its $200 million, company-wide, budget in the Eagle Ford this year. Goodrich is a historically natural gas focused company, but is now developing the Eagle Ford and exploring the Tuscaloosa Marine Shale. At the end of 2013, the company expects production will have shifted from almost all gas a few years ago to approximately 12% liquids.

If gas prices recover, watch for Goodrich to perform well. Their Eagle Ford acreage is also prospective for the Pearsall Shale.

Read the full press release at goodrichpetroleum.com

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

January 8, 2013 R.T. Dukes

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.

The top of guidance at $200 million is $50 million less than the company spent in 2012. Natural gas prices are taking a toll on budget in natural gas focused companies.

GDP Eagle Ford Operations Update

Average drilling days per well deceased by 40 percent sequentially in the quarter to 11 days for an average 6,000 foot lateral. Gross well costs for 2013 are projected to average $7.0 – $7.5 million for an average 6,000 foot lateral, which incorporates the lower well costs due to the faster drilling and cycle times achieved in the second half of 2012, as well as the reduced pressure pumping agreements in place for 2013. The Company currently plans to spud its initial Pearsall Shale test well in the first quarter.