Goodrich Board Okays Prelim Capex Budget
Goodrich Petroleum Corporation on Friday announced that its Board of Directors has approved a preliminary Capital Expenditure Budget of $275 million for 2007. The approved budget will provide for a continued accelerated pace of drilling and completion expenditures in the Cotton Valley trend, further expansion of its acreage position in the trend, and the completion of the low pressure gas gathering and salt water disposal system in the North Minden and Dirgin- Beckville areas in Rusk and Panola Counties, Texas.
Additionally, the Board approved the appointment of Robert C. Turnham, Jr., to the Company's Board of Directors. Mr. Turnham, age 48, has served as the Company's President and Chief Operating Officer since February, 2003, after serving as Chief Operating Officer since August, 1995.
Gil Goodrich, Vice Chairman and CEO commented, "As we recently announced, we have closed on a $175 million convertible note offering, which carries a 3.25% annual coupon and is convertible into our common stock at approximately $66 per share. This transaction will save approximately $8.1 million in interest expense as compared to an equivalent amount of debt outstanding under our previous loan agreements, as well as provide ample liquidity and financial flexibility to fund our 2007 capital program. Our Board's approval of an expanded capital expenditure budget of $275 million for 2007, will allow us to continue with the aggressive development of our Cotton Valley trend acreage and maintain a rig count in the trend of a minimum nine active rigs. The budget provides for further drilling and testing of horizontal Cotton Valley wells on our existing acreage. In addition, the Board is very pleased to announce the appointment of Rob Turnham, our President and COO, as a member of our board of directors."
Goodrich Petroleum is an independent oil and gas exploration and production company listed on the New York Stock Exchange. The majority of its properties are in Louisiana and Texas.
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