Goodrich Petroleum announced its acquisition of 35,000 net acres (50,000 gross) in the Eagle Ford play. The Company’s activity has primarily been in the Haynesville, in Northwest Louisiana and East Texas, but it is now turning its attention to focusing on oil and liquid rich resources in the well defined oil window of the Eagle Ford. According to their recent presentation at the IPAA Oil and Gas Investment Symposium, they believe that there is good permeability and 15-20% natural occurring porosity in the play. They have an average working interest of roughly 70% of the 50,000 gross acres and at 120-acre spacing expect to have 300 net drilling locations. The purchase price for the acreage was roughly $450 per acre cash and $1,250 per acre of drilling carry which equates to $1,700 per acre, totaling $15.0 million upfront and $44 million drilling carry. Goodrich is expecting to spend approximately $5 million per well with 4,500’ – 5,000’ laterals yielding roughly 350 Mboe, 90% of which being oil and liquids. They plan to move their first rig down to the play in early June and a second rig in late summer.
“For a company that has been 99% natural gas it’s very nice for us to have a shot at blending in some oil and increasing our oil production and reserves.” states Gil Goodrich, Vice Chairman and CEO of Goodrich Petroleum Corp., in his IPAA OGIS presentation.
The following is a map from the IPAA OGIS presentation showing their acreage in the Eagle Ford and some of the surrounding activity.
To learn more visit the Acquisition and Divestitures Folder in DI’s DNA.
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