Goodrich Petroleum has signed an agreement to acquire interests in producing properties and around 185,000 net acres in the Tuscaloosa Marine Shale Trend (TMS) for approximately $26.7m.

As part of the deal, the company will acquire a 66.7% working interest in producing assets and around 277,000 gross acres in the TMS. The company is expected to hold around 320,000 net acres in the TMS when combined with its current position.

The acquired assets have produced approximately 750 barrels of oil per day up to March of this year.

Goodrich began production at the rate of 1,045 barrels of oil equivalent (BOE), including 1,000 barrels of oil and 255,000ft³ of gas in the Smith 5-29H-1 well in Amite County, Mississippi.

The company is also about to complete the Anderson 17H-2 and Anderson 17H-3 wells, where it has a 7% working interest with results expected within two to three weeks.

Goodrich Petroleum CEO Walter G "Gil" Goodrich said that the transaction will be significant for shareholders, as the company has added proven developed producing reserves, facilities and infrastructure which will enhance future development.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"We are encouraged by our latest well result in the TMS, with the lateral placed above the rubble zone and drilled at an estimated cost of approximately $13m," Goodrich added.

"We anticipate a further reduction in costs going forward as we continue to improve on our drilling efficiencies, as well as utilise multi-well pad drilling, zipper fracs and realise additional service company capacity in the play."

The transaction, subject to customary closing conditions, is expected to be completed in August.

Nri energy