Energy Prospectus

GDP has agreed to host our luncheon at The Hess Club on Friday, March 16. They have recently completed two high rate horizontal wells in the Haynesville Shale play in Louisiana and they are completing two more in March. This small-cap has strong production growth. Production was up 54% year-over-year in 2017 and the expectation is for 120% to 150% YOY production growth in 2018. This is a luncheon you need to attend. - Dan

Goodrich Petroleum Corporation (NYSE: GDP) was recently added to our Small-Cap Growth Portfolio. It is an independent exploration and production company engaged in the exploitation, development and production of natural gas and crude oil primarily in the Haynesville Shale in North Louisiana and East Texas, the oil window of the Eagle Ford Shale trend in South Texas and the Tuscaloosa Marine Shale ("TMS") in Eastern Louisiana and Southwestern Mississippi. Goodrich is concentrating the vast majority of their exploitation and development efforts on natural gas on their existing leased acreage in the core of the Haynesville Shale in North Louisiana.

Robert C. Turnham, Jr., President and Chief Operating Officer will be speaking at our luncheon

Mr. Turnham has served as the Company's Chief Operating Officer since 1995 and became President and Chief Operating Officer in 2003. He has held various positions in the oil and natural gas business since 1981. From 1981 to 1984, Mr. Turnham served as a financial analyst for Pennzoil. In 1984 he formed Turnham Interests, Inc. to pursue oil and natural gas investment opportunities. From 1993 to 1995, he was a partner in and served as President of Liberty Production Company, an oil and natural gas exploration and production company.

John White at Roth Capital follows GDP closely. He rates it a BUY with a $23.00 price target. John sent me the following note on March 1st.

On 3/1/2018, GDP announced that two additional Haynesville wells completed
as follows: 1) the Wurtsbaugh 25&24-14N-16W 2H (55% WI) well has achieved
a 24-hour peak rate to date of approximately 25,000 Mcfe per day, and 2)
the Wurtsbaugh 25&24-14N-16W 3H (55% WI) well has achieved a 24-hour
peak rate to date of approximately 30,000 Mcfe per day. Both wells are in
DeSoto Parish, Louisiana. These are very strong flow rates and exceed our
expectations.

Positive 1Q 2018 Catalysts Likely: With the completion of these wells, GDP
announced it is currently producing approximately 60,000 Mcfe per day, which
is favorable against our 1Q 2018 estimate of 53,939 Mcfe per day. In addition,
GDP expects to commence fracking operations on two more wells, the Cason-
Dickson 14&23 No. 1 & 2 (92% WI) wells in early March. < Q4 production was 31,162 Mcfe per day

Asset Sale: On 2/28/2018, GDP announced it has closed the sale of working
interests in certain oil and gas leases, wells, and facilities and certain net
leasehold interests in a portion of its undeveloped acreage in the Angelina
River Trend in Angelina and Nacogdoches Counties, Texas to BP (BP-NC) for
total consideration of approximately $23 million. GDP will use a portion of the
proceeds to repay its revolving credit facility and to accelerate development of
its North Louisiana Haynesville asset in 2H 2018.
---------------------------------------
I have updated my forecast/valuation model for GDP and posted it to the EPG website. My valuation today is $21.00/share, but if they hit the production targets in my model, the multiple I am using to value it will go up. First Call's target price today is $17.00.

PLEASE REGISTER IF YOU PLAN TO ATTEND OUR LUNCHEON ON MARCH 16.

I have to give the Hess Club a head count for food on Tuesday.