Goodrich sells Eagle Ford assets for $118 million
HOUSTON, July 27, 2015 – Goodrich Petroleum has announced the sale of its proved reserves and associated leasehold in the Eagle Ford formation in La Salle and Frio counties, Texas. The deal was valued at around $118 million. The name of the purchaser was not disclosed.
The asset had an average output of around 2,850 barrels of oil equivalent per day during the first quarter of 2015, of which around 75 percent was oil and the rest gas and condensates.
Under the agreement, the US independent will retain around 58 percent, or around 70 square kilometres of its undeveloped leasehold. Goodrich plans to develop this area in the future when market conditions are more favourable, according to the company president Robert Turnham.
The company is looking to net around $50 million-$60 million after closing, which is expected for September 1, 2015. Profits will go towards paying off Goodrich’s short-term credit line with the remainder being kept in cash. Capital expenditure for 2015 is pegged at around $100 million.