Goodrich to Buy Working Interest in Tuscaloosa Marine Shale

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.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Petrofac Suspends Group Chief Operatin... (May 25)
 -  EnQuest On Track For Kraken First Oil ... (May 25)
 -  Energean Signs Lease Agreement for Exp... (May 25)
 -  Seadrill CEO Praises Workforce (May 24)
 -  Serinus Shuts-In Sabria Field Due to S... (May 23)


Most Popular Articles

From the Career Center
Jobs that may interest you
Senior Land Professional Job
Expertise: Landman|Lease Analyst
Location: Oklahoma City, OK
 
Surface Land Professional Job
Expertise: Landman|Lease Analyst
Location: San Antonio, TX
 
Automation Systems Analyst II
Expertise: Business Development
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours