Goodrich Petroleum Corp. unveiled a lower capital expenditure budget for 2013 as it plans to reduce natural gas production and focus on oil in either the Eagle Ford Shale or the Tuscaloosa Marine Shale.
The oil and gas producer said it set its 2013 capital expenditure budget at $175 million to $200 million, compared with its estimated 2012 budget of roughly $250 million.
Goodrich said $115 million to $137 million will be allocated to oil-directed activity in the Eagle Ford Shale in South Texas. The planned spending in the Tuscaloosa Marine Shale, which is partly in Louisiana and Mississippi, will be between $25 million and $50 million.
The gas-directed capital expenditure budget is $22 million, which is allocated to the completion of 13 wells at the Haynesville Shale in Louisiana.
Goodrich estimates oil volumes to grow by 40% to 60% in 2013 from 2012, while natural gas volumes are seen down about 10% year over year.
Copyright (c) 2012 Dow Jones & Company, Inc.
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