Goodrich Petroleum has unveiled its preliminary capital expenditure budget, which aims to support an increase in net production to around 100,000 cubic feet of gas (Mcfe) per day by the end of the year.
The company has received approval from its board of directors to spend between $85m and $95m this year, which represents an increase of $20m over previous expenditure budget plans.
The investment will be used to expedite development in the company’s core Haynesville shale acreage position in the Bethany-Longstreet and Thorn Lake areas of Caddo, DeSoto and Red River Parishes, Louisiana.
This year, Goodrich intends to spud 21 gross horizontal wells with a blended net average lateral length of around 9,000ft.
As per the budget, around 85% of the net wells are anticipated to be operated this year.
In addition, between $125 to $150m of the budget has been set aside for further development of the Haynesville Shale acreage next year. This investment will see net production increase by nearly 75% next year when compared to 2018 production estimates.
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By GlobalDataGoodrich also projects per-unit cash operating expenses to decrease by an additional 25% to 30% next year.
The company has started fracking operations on its Cason-Dickson 14&23 Number 1 & 2 wells in Red River Parish, Louisiana. It is anticipated that the wells will achieve initial production next month.
The company held around 50,000 gross in the Haynesville shale region, as of 30 June last year.