Goodrich Petroleum budget

Goodrich Petroleum Corporation have announced year-end 2014 reserves and its revised preliminary 2015 capital expenditure budget.

Reserves

Goodrich Petroleum Corporation reported proved reserves of 273.7 billion ft³ as of 31 December 2014, with future net cash flow of US$1.3 billion and present value of the future net cash flow before income taxes discounted at 10% of US$650.6 million. Proved oil reserves grew by approximately 13 million boe or 92% from 31 December 2013. Year-end reserves were comprised of 59.3% oil, 38.3% natural gas and 2.4% natural gas liquids, which does not include approximately 103.1 billion ft³ of natural gas reserves due to the Securities and Exchange Commission's five year rule and 140.3 billion ft³ of reserves that were sold in December of 2014. SEC pricing for the year-end report was US$94.99 per boe, US$4.35 per MMBtu for natural gas and US$44.84 per bbl of natural gas liquids. Proved reserves from the Tuscaloosa Marine Shale grew by 14.9 million boe and US$311 million of PV-10 compared to 31 December 2013, and now comprises 42.1% of the company's reserves and 60.4% of the company's PV-10.

2015 capital expenditure budget

Based on current commodity prices, the company revised its preliminary capital expenditure budget for 2015 to US$90 – 110 million, comprised of US$80 – 100 million of drilling and completion capital expenditures and approximately US$10 million of leasehold and infrastructure expenditures. The company will monitor capital expenditures on a quarterly basis and maintain flexibility to accelerate capital expenditures with improvement in oil prices and the monetisation of certain assets. Oil directed capital is estimated to be approximately 91 – 93% of the total drilling and completion budget, with the entire oil-directed allocation to the Tuscaloosa Marine Shale, where the company is seeing significant reductions in well costs.

Oil production volumes are expected to average approximately 4800 – 5200 bbls per day for 2015, which includes completion deferrals into the second half of 2015. Natural gas volumes are expected to average approximately 23 000 – 26 000 million ft³ per day.

Adapted from press release by Joe Green

Read the article online at: https://www.oilfieldtechnology.com/exploration/02022015/goodrich-petroleum-reserves-expenditure-budget-324/