Goodrich Petroleum Corp., Houston, (NYSE: GDP) reports two horizontal Louisiana Haynesville wells have been completed.
The Fallon 18H-1 (59% working interest) in Bethany-Longstreet Field in Caddo and DeSoto Parish had initial production of 21.3 million cubic feet of gas equivalent per day. The wells tested on a 24/64-inch choke with 6,800 pounds per square inch.
Also in Caddo Parish, the Wills 14H-1 (81% working interest) in Greenwood-Waskom Field had initial production of 12 million cubic feet per day. The well tested on a 22/64-inch choke with 5,800 pounds per square inch.
The company initiated a business strategy change in 2009 from a company drilling predominately vertical wells to one drilling almost exclusively horizontal wells. At year-end, after evaluating the success of its horizontal drilling programs in both the Haynesville shale and the Cotton Valley (Taylor) Sand, the company decided to remove all vertical proved undeveloped and probable drilling areas from its reserves and inventory.
Goodrich vice chairman and chief executive Gil Goodrich says, “A year ago, the Haynesville shale constituted only 1% of proved reserves and a negligible percentage of production. Today, the Haynesville shale represents 47% of the company's proved reserves and 42% of fourth quarter 2009 production.”
Due to the switch, the company faced a $191.1 million loss in net income during the fourth quarter. The company has increased its planned 2010 capex by approximately 10% to $255 million, which Goodrich says the company is confident will lead to another year of “strong growth in reserves, production and cash flow.”
Goodrich has oil and gas properties primarily in Louisiana and Texas.
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