Keep an eye on this small-cap. I plan to profile it in July. John White at Roth Capital rates it a BUY with a $23 price target. - Dan
HOUSTON, June 14, 2017 /PRNewswire/ -- Goodrich Petroleum Corporation (NYSE Market: GDP) announces the completion of its Wurtsbaugh 25&24 No. 1 (69% WI, 50% NRI) well in the Bethany-Longstreet field in DeSoto Parish, Louisiana. The well, which was fracked with approximately 4,000 pounds of proppant per foot, has achieved a 24-hour peak rate to date of 31,000 Mcf per day from approximately 9,000 feet of lateral.
The Company is expected to spud its next well, the Franks 25&24 No. 1 (estimated 69% WI, 50% NRI) the middle of July, with a planned lateral of approximately 10,000 feet, and plans to drill and complete two additional long lateral wells following the Franks 25&24 No. 1 later in the year.
The Company also announces that it has leased approximately 600 net acres adjacent to its existing acreage in Red River Parish, Louisiana, which combined with its existing leasehold, will allow for five 10,000 foot laterals and one additional 4,600 foot lateral. The Company will earn this acreage through the drilling and completion of wells, with no upfront cash consideration. The Company now owns rights to approximately 26,000 net acres in the Haynesville.
Current production for the Company is approximately 50,000 Mcfe per day (up from 26,000 Mcfe per day average in the first quarter) and the Company has increased its fourth quarter of 2017 guidance to an average of 55,000 – 60,000 Mcfe per day.
GDP
Re: GDP
Yes, they were involved in the Tuscaloosa Marine Shale in Mississippi, which is sub-economic at today's oil price. They seem to have it together now with focus on the Haynesville where they are getting outstanding well results. I can send you the new Roth Capital update if you wish. Just send me an e-mail ( dmsteffens@comcast.net ).
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group