Goodrich Petroleum Corporation announced the acquisition of additional interests in the Cotton Valley trend, which increases its net exposure in the Haynesville Shale to approximately 30,000 net acres. The Company also announced updated Haynesville drilling activity at Bethany-Longstreet and plans for the Longwood field.
The Company has signed a definitive purchase and sale agreement with a private party to acquire approximately 3,250 net acres in the Haynesville Shale trend and 12.3 Bcfe of proved reserves (75% developed) associated with the shallower Hosston and Cotton Valley formations in the Longwood field of Caddo Parish, Louisiana. The Company is acquiring the acreage and reserves for $32 million, in an all-stock transaction. The Company has issued approximately 900,000 shares of Goodrich Petroleum common stock based on the average of the 20-day volume weighted average prices from April 28-May 20th, with a requirement that the shares be registered within 23 days. The Company is purchasing interests in 25 gross wells, with approximately 1,200 Mcfe per day of net production. The Company has plans to drill two new vertical wells and re-enter another to test the Haynesville Shale at Longwood by the end of the year.
As announced in conjunction with the Company's first quarter earnings, the Company's initial vertical Haynesville Shale well in the Bethany-Longstreet field, the James Cook No.1, tested at an initial flow rate of just over 1,000 Mcf per day from the Haynesville Shale formation. Additionally, the Company has drilled and logged its second vertical Haynesville Shale well at Bethany- Longstreet, the Clarence Brown No.1, which encountered approximately 230' of net Haynesville Shale with significant gas shows recorded throughout the section. The Company plans to complete the Clarence Brown No.1 within the next 30 days and to spud its initial horizontal Haynesville test in approximately 90 days.
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