Goodrich Petroleum Increases 2005 Capital Budget to $135 Million
Goodrich Petroleum's (NYSE: GDP) Board of Directors has approved a second increase in its 2005 capital expenditure budget to a total of approximately $135 million. The Company's 2005 capital expenditure budget was originally approved in December 2004 at $75 million and was increased in April 2005 to $95 million before the latest increase was approved by the Board of Directors.
As before, the majority of the increased capital expenditures will be
concentrated on development of the Company's acreage in the Cotton Valley
Trend of East Texas and Northwest Louisiana, including the initial phase of
development activity on the Company's recently announced acquisition of
acreage on its Cotton and Cotton South prospects in Nacogdoches and Angelina
Counties, Texas. With the completion of a $53 million public equity offering
in May 2005, the Company expects to finance its remaining 2005 capital
expenditures through a combination of cash flow from operations and bank
borrowings under its existing senior credit facility.