Goodrich Petroleum 2018 budget targets Haynesville shale

By Patrick C. Miller | January 02, 2018

Goodrich Petroleum Corp. will devote its entire 2018 capital expenditure budget of $65 million to $75 million to its core Haynesville shale acreage in Louisiana.

In the coming year, the Houston-based E&P expects to drill 16 horizontal wells with an average lateral length of 9,000 feet. Goodrich forecasts a production increase of 130 to 145 percent over the previous year. This activity will occur in the Bethany-Longstreet and Thorn Lake areas of Caddo, DeSoto and Red River parishes.

Based on the preliminary budget, Goodrich expects to grow production to a range of approximately 28.3 to 30.3 billion cubic feet of natural gas equivalent or an average of 77,000 to 83,000 thousand cubic feet of natural gas equivalent per day for the year. Natural gas is expected to comprise about 95 percent of total production.

The company’s budget anticipates operating approximately 85 percent of its net wells for the year. The preliminary capital expenditure budget is subject to quarterly review and approval by the company's board of directors.

Goodrich is fracking its Franks 25 and 24 No. 1 well, a 10,000-foot lateral in the Bethany-Longstreet field of DeSoto Parish. It plans to zipper-frack its Wurtsbaugh 25 and 24 No. 2 and 3 wells upon completion of the Franks well. Both Wurtsbaugh wells are approximately 7,500 foot laterals. All three wells are expected to come online in early January.

Goodrich is also drilling its Cason-Dickson 14 and 23 No. 1 and 2 wells in the Red River Parish. The Cason-Dickson wells are planned as 10,000 foot laterals and expected to be fracked in February. 

Cash margin is expected to expand in 2018 as unit costs decrease with the growth in volumes. Goodrich has hedged 40 to 42 percent of its expected natural gas volumes for the year at a blended average price of $3.02 and approximately 50 to 55 percent of expected crude oil volumes for the year at $51.08.