Goodrich Reports Mid-Year Proved Reserves
Goodrich Petroleum has received its fully engineered mid-year reserve report from Netherland, Sewell & Associates, Inc. with an effective date of June 30, 2007. Total proved reserves are 302 Bcfe, 95% natural gas and 31% developed. Proved reserves grew by 75% during the first half of 2007, up from 173 Bcfe of proved reserves at year end 2006 excluding discontinued operations. Proved reserves at year end 2006 including discontinued operations were 206 Bcfe.
The reserves were calculated using unescalated pricing of $6.79 per MMBtu of natural gas and $71.17 per barrel of oil. Proved reserves were almost exclusively located in the Company's Cotton Valley Trend. The average reserve per proved Cotton Valley Trend location increased to approximately 1.1 Bcfe from approximately 1.0 Bcfe at year-end.
Based on the estimates of proved developed reserves as of June 30, 2007, as well as the Company's current production rate and mix of production between properties, the Company preliminarily estimates second half of 2007 DD&A rates will decrease by $0.40 to $0.60 per Mcfe of production.
Upon delivery of the reserve report and review by its bank group, the Company expects to receive an updated borrowing base determination within the next 30 days.
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