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