HOUSTON, June 23 /PRNewswire-FirstCall/ -- Goodrich Petroleum Corporation
(NYSE: GDP) today announced the acquisition of additional Haynesville Shale
acreage in Caddo Parish, Louisiana, an operational update on a number of
recent drilling and development activities, increased production guidance for
the quarter, and an increase in its capital expenditure budget for 2008.
NORTH LOUISIANA
Haynesville Shale Acquisition
The Company has entered into a definitive agreement with a private company
for the right to acquire a fifty percent non-operated interest in 5,800 gross
acres (2,900 net to the Company) in the Central Pine Island field, adjacent to
its Longwood field in Caddo Parish, Louisiana. The Company estimates total
consideration to be approximately $3,325,000, which will be comprised of
acreage costs for the fifty percent interest in the leasehold and a drilling
promote on the initial well drilled on the acreage. The Company has
participated in the initial well on the acreage, the Hall 5 No. 1 (50% WI non-
operated), which is currently drilling and expected to reach total depth
through the Haynesville Shale in the next few days.
With the completion of this transaction and the previously announced joint
venture with Chesapeake Energy, the Company has a total of approximately
22,000 net acres in north Louisiana which are believed to be prospective for
the Haynesville Shale formation.
EAST TEXAS
Haynesville Shale Activity - Minden and Beckville Fields
In East Texas, the Company has drilled and completed its initial vertical
Haynesville Shale well in its Minden field in Panola and Rusk Counties, Texas,
the Taylor Sealey No. 1 (100% WI), with an initial production rate of 2,600
Mcfe per day on a 22/64 inch choke with 2,400 psi. The well encountered
approximately 130 feet of lower Haynesville Shale thickness and is located in
the southeastern portion of the Company's Minden acreage.
The Company has also drilled its Lutheran Church No. 4 (100% WI), the
initial vertical Haynesville Shale well in its Beckville field in Panola and
Rusk Counties, Texas. The well is located in the northeastern portion of the
Company's overall Beckville-Minden acreage and encountered 200 feet of
thickness in the lower Haynesville Shale section. The well is currently in the
completion phase.
Based on the success of these first two wells, the Company expects to spud
its first horizontal Haynesville Shale test on its East Texas acreage block
during the fourth quarter of this year.
Angelina River Trend
James Lime Activity
The Company has drilled and completed its Henderson 1H (100% WI) well
within its Cotton Prospect area of the Angelina River Trend, with an initial
production rate of approximately 7,400 Mcfe per day on a 30/64ths inch choke
with 1520 psi flowing pressure and recovery of approximately 50% of the frac
fluid. The Company has also completed its Kirkland 2H (87.5% WI) in the
eastern portion of the Company's Allentown Prospect area with an initial
production rate of 4,000 Mcfe per day on a 34/64 choke with 725 psi during
flowback. Also within the Cotton Prospect area, the Ramos 1H (57% WI non-
operated) horizontal James Lime well is currently being completed.
Travis Peak Activity
The Company has drilled and completed ten gross Travis Peak wells in
the Angelina River Trend since the first quarter, with an average initial
production rate of 3,300 Mcfe per day.
The Company currently has five rigs working in the Angelina River Trend
(two operated and three non-operated). Four of the five rigs are currently
drilling Travis Peak vertical wells and one is drilling another James Lime
horizontal on the Cotton Prospect.
NORTH LOUISIANA
Bethany-Longstreet Activity
In the Bethany-Longstreet Field, the Company has drilled and completed its
Champe Graham 5H (70% WI), its second horizontal Cotton Valley well in the
field, which had an initial thirty day average production rate of
approximately 2,000 Mcfe per day.
The Company has also drilled and completed its second vertical Haynesville
Shale well in the field, the Clarence Brown No. 1 (70% WI), which encountered
approximately 230 feet of thickness in the lower Haynesville Shale section and
had an initial production rate of 950 Mcf per day.
UPDATE ON PRODUCTION, CAPITAL EXPENDITURE BUDGET, AND HEDGING
Based on field production numbers through the second week of June, the
Company is revising upward its second quarter production forecast to an 8-11%
sequential growth rate over the first quarter of 2008 (up from previously
announced guidance of 5-9% sequential growth). Thus, the Company currently
expects net daily production volumes for the second quarter to average between
62,500 and 64,000 Mcfe per day.
The Company also announced that its Board of Directors has approved an
increase in the preliminary capital expenditure budget for 2008 to $350
million, up from $275 million, as a result of anticipated increased drilling
activity, primarily driven by its Haynesville Shale program.
Finally, the Company announced it has recently added incremental hedge
protection for a portion of its 2009 production, entering into a costless
collar transaction with a floor of $9.50 per Mmbtu and a ceiling of $16.90 per
Mmbtu on 10,000 Mmbtu for all of calendar year 2009. An updated hedge schedule
has been posted on the Company's website.
Robert Turnham, the Company's President and Chief Operating Officer,
commented, 'We are pleased to announce the acquisition of an additional 2,900
net acres prospective for the Haynesville Shale in Caddo Parish adjacent to
our Longwood field, and look forward to results from our initial well in the
field within 60 days. In East Texas, we are extremely encouraged by the
results of our initial vertical Haynesville Shale wells at Minden and
Beckville. The two initial Haynesville Shale wells in East Texas are located a
little more than six miles from each other and provide meaningful data points
as to the prospectivity of the play over our acreage block in Panola and Rusk
Counties. Our current plans include the drilling of several additional
vertical tests to be followed by our initial horizontal development on our
East Texas block by the end of the year. We are also extremely pleased with
the continuing operational achievements we have made during the first six
months of the year on our core Cotton Valley Trend acreage, including the
development of the Cotton Valley, Hosston, Travis Peak and James Lime
formations. These results, along with the emerging Haynesville Shale play and
our recently announced joint venture, have allowed us to expand our capital
expenditure budget for 2008 to accelerate development of the drilling
inventory.'
Certain statements in this news release regarding future expectations and
plans for future activities may be regarded as 'forward looking statements'
within the meaning of the Securities Litigation Reform Act. They are subject
to various risks, such as financial market conditions, operating hazards,
drilling risks, and the inherent uncertainties in interpreting engineering
data relating to underground accumulations of oil and gas, as well as other
risks discussed in detail in the Company's Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission. Although the
Company believes that the expectations reflected in such forward looking
statements are reasonable, it can give no assurance that such expectations
will prove to be correct.
Goodrich Petroleum is an independent exploration and production company
listed on the New York Stock Exchange. The majority of its oil and gas
properties are in Louisiana and Texas.
SOURCE Goodrich Petroleum Corporation