Goodrich: Quick Update

Goodrich Petroleum reported its earnings last week.  As part of its earnings release, Goodrich focused on a strategic shift within the company to drill only horizontal wells going forward.  The change in strategy results both from operational successes and a change in SEC guidelines for determining reserves that affect all production companies. 

Goodrich is "highly leveraged" to the Haynesville Shale and the north LA/east TX area.  In 2008, only 1% of its proved reserves came from the Haynesville Shale.  That number jumped to 42% in 2009.  The company is dedicating $200 million (78%) of its $255 million 2010 capital budget to the Haynesville Shale.

Goodrich announced two new completions that have not shown up in state numbers (the IP rates are 24 hour peak rates, so expect the "official numbers" to be somewhat lower):

• Fallon 18 H #1: 21.1 MMcf/day IP on 24/64" choke at 6,800 psi; Bethany Longstreet Field, DeSoto Parish, Sec. 18/Township 14/Range 15; Haynesville reservoir A, serial #240274
• Wills 14 H #1: 12.0 MMcf/day IP on 22/64" choke at 5,800 psi; Greenwood-Waskom Field, Caddo Parish, S14/T17/R16; res. A, serial #240316