Goodrich Closes Sale of South Louisiana Assets
Goodrich Petroleum Corp. has closed on the previously announced agreement to sell substantially all of its assets in South Louisiana for approximately $100 million with an effective date of July 1, 2006. The closing price has been adjusted for cash flow from the properties since the effective date and estimated through March 31, 2007. As such, the adjusted closing sale price net to the Company is approximately $77 million.
Commenting on the sale, Walter G. "Gil" Goodrich, Vice-Chairman and CEO said, "The closing of this transaction completes the strategic shift we initiated in 2004 when we entered into the Cotton Valley trend of East Texas and Northwest Louisiana. In addition to allowing us to focus completely on the Cotton Valley trend, the transaction further strengthens our balance sheet and provides meaningful incremental capital which will assist in funding our 2007 capital expenditure budget of $275 million, all of which is earmarked for development in the Cotton Valley trend."
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.
- Bankruptcy Rebound? Oil, Gas Companies Bounce Back from Chapter 11 (Oct 14)
- Shale Loses 9 Billion Barrels of Reserves After SEC Inquiries (Jun 15)
- Houston Court Cuts into Delaware's Bankruptcy Business (May 11)