Goodrich Petroleum to acquire oil assets in Tuscaloosa Marine Shale, US

Goodrich Petroleum has signed an agreement to acquire interests in producing properties and around 185,000 net acres in the Tuscaloosa Marine Shale Trend (TMS) for approximately $26.7m.

As part of the deal, the company will acquire a 66.7% working interest in producing assets and around 277,000 gross acres in the TMS. The company is expected to hold around 320,000 net acres in the TMS when combined with its current position.

The acquired assets have produced approximately 750 barrels of oil per day up to March of this year.

Goodrich began production at the rate of 1,045 barrels of oil equivalent (BOE), including 1,000 barrels of oil and 255,000ft³ of gas in the Smith 5-29H-1 well in Amite County, Mississippi.

The company is also about to complete the Anderson 17H-2 and Anderson 17H-3 wells, where it has a 7% working interest with results expected within two to three weeks.

Goodrich Petroleum CEO Walter G "Gil" Goodrich said that the transaction will be significant for shareholders, as the company has added proven developed producing reserves, facilities and infrastructure which will enhance future development.

"We are encouraged by our latest well result in the TMS, with the lateral placed above the rubble zone and drilled at an estimated cost of approximately $13m," Goodrich added.

"We anticipate a further reduction in costs going forward as we continue to improve on our drilling efficiencies, as well as utilise multi-well pad drilling, zipper fracs and realise additional service company capacity in the play."

The transaction, subject to customary closing conditions, is expected to be completed in August.