HOUSTON, March 12, 2018 /PRNewswire/ -- Goodrich Petroleum
Corporation (NYSE American: GDP) today announced an updated and
accelerated preliminary capital expenditure budget for 2018 and a
preliminary capital expenditure budget for 2019 following the
Company's recent $23 million asset
sale.
For 2018, the Company's board of directors approved a
$20 million increase to $85 - 95 million to accelerate development in its
core Haynesville Shale acreage position in the Bethany-Longstreet and Thorn Lake areas of
Caddo, DeSoto and Red River Parishes, Louisiana. The Company anticipates drilling 21
gross (8.7 net) horizontal wells for the year, with a blended net
average lateral length of approximately 9,000 feet. The budget
currently contemplates that the Company would operate approximately
85% of its net wells for the year. The capital expenditure budget
is subject to quarterly review and approval by the Company's board
of directors.
Based on the revised accelerated budget, the Company expects net
production to grow throughout the year with an estimated 2018 exit
rate of approximately 100,000 Mcfe per day.
For 2019, the Company's board approved a preliminary capital
expenditure budget of $125 to
$150 million earmarked for further
development of the Company's core Haynesville Shale acreage with
2019 net production forecast to grow by approximately 75% over
estimated 2018 production. In addition, the Company estimates per
unit cash operating expenses will continue to decline in 2019 by an
additional 25% to 30% versus the declines expected in 2018 as
contained in the previous guidance.
Operational Update
The Company has commenced fracking operations on its
Cason-Dickson 14&23 No. 1
& 2 (92% WI) wells in Red River
Parish, Louisiana. The Cason-Dickson wells will be zipper fracked
with initial production expected in early April
2018.
OTHER INFORMATION
Initial production rates are subject to decline over time and
should not be regarded as reflective of sustained production
levels. In particular, production from horizontal drilling in
shale oil and natural gas resource plays and tight natural gas
plays that are stimulated with extensive pressure fracturing are
typically characterized by significant early declines in production
rates.
Unless otherwise stated, oil production volumes include
condensate.
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, changes in commodities prices
and costs of drilling and completion, 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 for the year ended December 31,
2017 and other subsequent 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 oil and natural gas
exploration and production company listed on the NYSE American
under the symbol "GDP".
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SOURCE Goodrich Petroleum Corporation