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.

The Company estimates oil volumes to grow by 130 – 160% in 2012 versus 2011, which will drive very strong cash flow growth.  Natural gas volumes are expected to be flat to slightly down, while overall production on a Mcfe basis is expected to increase by 10 – 15% over 2011.  Oil volumes are estimated to grow to approximately 5,000 barrels per day as the Company exits 2012.

Read the entire press release at goodrichpetroleum.com

Goodrich Petroleum Buda Lime Well Results Impress

In Goodrich Petroleum's operations update from the second quarter, the company announced impressive well results from a horizontal Buda Lime well. The well came on at almost 1,400 barrels of oil per day and 1.5 mmcfd. The well averaged 1,000 barrels of oil equivalent per day over the first 30 days. At $75 oil that $2.25 million in first month. Subtract royalties and operating costs and your looking at a pretty quick payout. Possibly, 3-4 months. That's a good well!  

The Company has completed its third Buda Lime well, the Carnes 6H (67% WI) well, an unstimulated 3,100 foot lateral, at a 24-hour initial production rate of 1,635 BOE per day, comprised of 1,380 barrels of oil and 1,535 Mcf per day. The well averaged 1,000 BOE per day over the first thirty days, and had an estimated completed well cost of less than $3.0 million.

The Company has two rigs running full time drilling Eagle Ford Shale and Buda Limewells. For the remainder of 2011, the Company currently anticipates drilling 5 gross (3.5 net) Eagle Ford Shale wells on the southern half and 8 gross (5.5 net) Buda Limewells on the northern half of the Company's approximate 40,000 net acre block.

Read the press release at GoodrichPetroleum.com

Goodrich Eagle Ford Shale Acquisition

Goodrich Petroleum diversifies outside of the ArkLaTex Basin. The company is very much gas weighted and this deal adds a liquids/oil component to the company's drilling inventory.  Goodrich paid $59 million (~$1,700 per acre) for 35,000 acres in the Eagle Fors Shale in La Salle County and Frio County.

"The company plans to acquire an average 70% leasehold interest in roughly 50,000 gross (35,000 net) acres within the oil window of the Eagle Ford Shale play in La Salle and Frio Counties, Texas for roughly $59 million ($15mm cash, $44mm carry)."

"The company expects to spud its initial Eagle Ford Shale well later in the second quarter and run 1 - 2 rigs in the play during the second half of the year and currently expects to spud 7 - 8 Eagle Ford Shale wells during 2010. Jefferies & Co. believes this 'will come primarily at the expense of [Goodrich Petroleum’s] Cotton Valley program, which had $46 million earmarked for '10 for a seven well program.' ”

"Jefferies believes the company enters the Eagle Ford at an attractive price. The price 'comps well versus Petrohawk's recent acquisition in overpressured De Witt County at $3,000/acre, Petrohawk’s joint venture with Swiftin McMullen also at $3,000/acre as well as BP's JV with Lewis (private) estimated at $4-5,000/acre. On the other hand, HK also bought into their normally pressured Red Hawk position in Zavala County for $200/acre."

Read the full news release at ogfj.com