Goodrich Petroleum Corporation (ticker: GDP) has updated and accelerated its preliminary capital expenditure budget for 2018, following the recent $23 million asset sale. For 2018, the company’s board of directors approved a $20 million increase to $85-$95 million to accelerate development in its core Haynesville Shale acreage position.
The company anticipates drilling 21 gross (8.7 net) horizontal wells for the year, with a blended net average lateral length of approximately 9,000 feet. The budget currently contemplates that the company would operate approximately 85% of its net wells for the year. The capital expenditure budget is subject to quarterly review and approval by the company’s board of directors, Goodrich said.
Based on the revised accelerated budget, the company expects net production to grow throughout the year with an estimated 2018 exit rate of approximately 100,000 Mcfe/d.
2019
For 2019, the company’s board approved a preliminary capital expenditure budget of $125-$150 million, earmarked for further development of the company’s core Haynesville Shale acreage, with 2019 net production forecast to grow by approximately 75% over estimated 2018 production.
In addition, the company estimates per unit cash operating expenses will continue to decline in 2019 by an additional 25%-30%, versus the declines expected in 2018.
Operational update
The company has commenced fracking operations on its Cason-Dickson 14&23 No. 1 & 2 (92% WI) wells in Red River Parish, Louisiana. The Cason-Dickson wells will be zipper fracked, with initial production expected in early April 2018, Goodrich said.
