Goodrich Petroleum Closes On TMS Acquisition

Acquired a 66.7% WI in 277,000 gross acres and 750 bbls/day.

Goodrich Petroleum Corp. (NYSE: GDP) closed on the previously announced acquisition in the Tuscaloosa Marine shale (TMS) for US $23.7 million in cash.

The acquisition included a 66.7% working interest in 277,000 gross acres and 750 barrels of oil per day. The transaction was effective March 1. At closing, the company's borrowing base increased to $243 million, with nothing currently drawn. The company intends to spud its initial well on the acquired acreage in October.

The company also completed the non-operated Anderson 17-3 (7% working interest) well at a maximum 24-hour average rate of 915 barrels of oil equivalent (BOE, 94% oil) per day. Both the non-operated Anderson 17-2 (7% working interest) well, which was previously reported at 1,540 BOE per day, and the Anderson 17-3 well have been on an accelerated choke schedule in preparation of the installation of downhole pumps which have the potential of moving high fluid volumes.

Additionally, the company updated production for its company-operated Smith 5-29-1 (98% working interest) well, which has averaged 850 BOE (94% oil) per day over 25 days.

The company has drilled and cased its CMR/Foster Creek 20-7-1 (98.5% working interest) well, a 6,200 foot lateral with 23 planned frac stages and a scheduled frac date of Sept. 1. The company is expected to spud its Huff 18-7-1 (97% working interest) well this week.

Goodrich Petroleum Corp. is an independent energy company engaged in the exploration, development, and production of oil and natural gas. The company is based in Houston.