Goodrich Petroleum Corp. is more than doubling its stake in the Tuscaloosa Marine Shale (TMS) by buying a working interest and 277,000 gross acres in Louisiana for $27.6 million, the company said in a statement Monday.
The acquisition, which will close Aug. 22, will give Goodrich a total of 320,000 acres in the TMS, or approximately two-thirds of the formation.
TMS is an oil and natural gas field located in southeastern Louisiana and southwestern Mississippi that is already being compared with the Eagle Ford Shale formation in south Texas.
“We view this transaction as meaningful for our shareholders as we have added proved developed producing reserves, facilities and infrastructure to leverage off of the future development and more than doubled our acreage position and exposure to the TMS with very little change in our availability,” said Walter G. Goodrich, chief executive officer for the company, in a press release.
The company said it had completed one of its wells in the TMS formation, the Smith 5-29H-1 in Amite County, Mississippi. During the early stage of flowback, the well was producing a 24-hour average rate of 1,045 barrels of oil equivalent.
“We are encouraged by our latest well result in the TMS, with the lateral placed above the rubber zone and drilled at an estimated cost of approximately $13 million. We anticipate a further reduction in costs going forward as we continue to improve on our drilling efficiencies, as well as utilize multi-well pad drilling, zipper fracs and realize additional service company capacity in the play,” Goodrich said.
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