Goodrich Petroleum Says Reserves Increased 71%


Goodrich Petroleum says that it's proved reserves at December 31, 2005 increased approximately 71% over year end 2004 to approximately 173 BCFE, which was comprised of approximately 143 Bcfe of natural gas and 5.0 million barrels of crude oil and natural gas liquids. Total proved reserves were approximately 83% natural gas, 40% developed and had a pretax present value at year end, discounted at 10%, of approximately $587 million using non-escalated year end pricing. 100% of the Company's proved reserves at year end were audited by the Company's independent reservoir engineers.

The Company replaced approximately 1,088% of its estimated 2005 production through total reserve additions, all of which were associated with its drilling and development activities during 2005. At year end, the Company's reserve life, or R/P ratio, was approximately 20 years based on 2005 full year production estimates.


The Company currently estimates capital expenditures in 2005 of approximately $165 million, including approximately: $12 million in acreage expansion and acquisitions, $5 million in production gathering and facility costs, $5 million of anticipated reimbursable hurricane related expenditures, $4 million of expenditures associated with 2006 wells and $139 million in drilling and development costs. Drilling and development capital expenditures for wells spudded in 2005 totaled $119 million. Reserve additions associated with the drilling and development capital expenditures of wells spudded in 2005 resulted in finding and development cost ("F&D") of approximately $1.26 per Mcfe. After adding in the anticipated future development costs associated with the proved undeveloped reserves for 2005 reserve additions, total all-in F&D cost is estimated to be approximately $2.78 per Mcfe. The Company's proved reserves in the Cotton Valley Trend increased to approximately 123 Bcfe or 71% of total proved reserves.


Production volumes increased by 22% in the fourth quarter over the third quarter of 2005, to approximately 29,000 Mcfe per day. During the fourth quarter the Company restored approximately 90% of its pre- Hurricane, South Louisiana volumes. Gross Cotton Valley Trend volumes increased in the fourth quarter by an estimated 52% over the third quarter, to approximately 24,000 Mcfe per day from an average 33 net wells producing for the entire quarter.

During 2005, the Company estimates it produced approximately 8.6 Bcfe, which was comprised of approximately 70% natural gas and 30% crude oil and natural gas liquids. South Louisiana production volumes were materially impacted during the second half of 2005 due to shut in and/or curtailment from Hurricanes Katrina and Rita.


The Company significantly expanded its activities and operations in 2005 and drilled 65 (gross) wells, of which approximately 95% were in the Cotton Valley Trend. In the Trend, the Company has now drilled 79 wells with a 100% success rate. Of these wells, 70 are now online and producing and 9 are currently being completed. In addition, the Company is currently drilling 8 wells within the Trend. The Company has successfully continued to expand its acreage position in the Trend and currently holds interests in approximately 127,000 gross acres and 78,000 net acres.

In the Cotton South area of Nacogdoches and Angelina Counties, the Company has now completed 3 wells in the Travis Peak formation and placed all 3 on production at an average initial rate of approximately 3,200 Mcf (gross) per day.

In addition, the Company has recently reached an agreement for an additional drilling rig, which is currently under construction and will be added under a long term contract. The additional rig is currently due to be delivered in November 2006 and will be utilized to further develop the Company's Cotton Valley Trend acreage.


Our Privacy Pledge

Most Popular Articles
Related Articles

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours