Goodrich Sells Interest | Russell T. Rudy Energy LLC
“Rigzone” reports that Goodrich Petroleum Corp. is selling assets in LaSalle and Frio counties, Texas, for $118 million. These Eagle Ford shale properties include production averaging 2,850 barrels of oil equivalent per day (75% oil) as well as an undeveloped block. Analysts at Raymond James contend that the value of the reserves was such that the buyer attributed little value to the non-producing acreage. However, the consensus is that Goodrich could not make a profit drilling this block at current prices.
In a prepared statement Goodrich revealed that the proceeds from the sale will be used to pay down its revolving line of credit, improve liquidity, and continue developing the Tuscaloosa Marine shale. The company is the major player in this play in Louisiana and Mississippi. Goodrich is retaining a 58% interest in about 17,000 net acres of undeveloped leasehold in the Eagle Ford for future sale or development.
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