Goodrich Petroleum Corp. (AMEX: GDP) closed on a sale of East Texas assets that the Houston-based company said will help accelerate Haynesville Shale development.

Goodrich sold the assets consisting of certain production, facilities, infrastructure and a portion of its acreage in the Angelina River Trend to BP America Production Co., an affiliate of BP Plc (NYSE: BP). The value of the transaction wasn't disclosed.

A portion of the sale proceeds will be used to pay off Goodrich's revolver with plans to accelerate development of its North Louisiana Haynesville asset in the second half of 2018.

Goodrich exited the fourth quarter with $26 million of cash and $63.7 million of total principal amount of debt, for net debt of $37.7 million. The company plans to maintain its capex guidance for 2018 of $65 million to 75 million.

On March 1, Goodrich also announced that two additional Haynesville wells have been completed as follows:

  • The Wurtsbaugh 25&24-14N-16W 2H (55% working interest) well in DeSoto Parish, La., has achieved a 24-hour peak rate to date of about 25 MMcfe/d from a producing lateral length of 7,249 f; and
  • The Wurtsbaugh 25&24-14N-16W 3H (55% working interest) well in DeSoto has achieved a 24-hour peak rate to date of about 30 MMcfe/d from a producing lateral length of 7,465 ft.

With the completion of these wells, Goodrich is currently producing roughly 60 MMcfe/d. The company said it expects to commence fracking operations on its next two wells, the Cason-Dickson 14&23 No. 1 and 2 (92% working interest) wells in early March.