Goodrich focused on TMS, Haynesville, Eagle Ford
Goodrich Petroleum Corporation’s (OTCQX: GDPP) common stock commenced trading today on the OTCQX market under the trading symbol GDPP.
Goodrich President Robert C. Turnham said in a statement, “We are very pleased to have the opportunity to trade on OTCQX and see this as an important step towards increasing shareholder liquidity and investor visibility of our company, pending our listing on a national securities exchange.”
In April, 2016, Goodrich voluntarily filed for reorganization under Chapter 11, aiming to eliminate approximately $400 million in debt from its balance sheet. The management team remained, allowing operations to continue as normal throughout the court-supervised financial restructuring process, including the payment of royalty and operating expenses.
On Oct. 12, 2016, the company emerged from bankruptcy with the same assets. It received $40.0 million in new capital through the issuance of Convertible Second Lien Senior Secured Notes due 2019.
In a press release the company said $20 million of the new capital was used to pay down outstanding borrowings under its previous senior credit facility to $20 million, which is now the outstanding principal amount of its new senior secured credit facility led by Wells Fargo Bank, National Association as administrative agent. The Company also has $20 million in cash from the new capital to fund initial development of its Haynesville Shale drilling program.
Upon emerging Goodrich said its board of directors is comprised of Walter G. Goodrich and Robert C. Turnham, Jr., existing directors, together with new directors Ronald F. Coleman, Eugene I. Davis, K. Adam Leight, Timothy D. Leuliette and Thomas M. Souers.
The existing common stock was cancelled, and its new common stock was subsequently issued to the second lien notes claim holders, unsecured notes claim holders, general unsecured claim holders and management, the company said.
Goodrich Petroleum asset map. Source: Goodrich Petroleum
Operations update
Goodrich works primarily in the Tuscaloosa Marine Shale, or TMS, in Eastern Louisiana and Southwestern Mississippi, the oil-window of the Eagle Ford Shale trend in South Texas and the Haynesville Shale in Northeast Texas and Northwest Louisiana.
In its 10Q for the quarter ending Sept. 30, 2016 Goodrich updated operations:
Tuscaloosa Marine shale
“We held approximately 235,000 gross (167,000 net) acres in the TMS as of September 30, 2016. As of September 30, 2016, we had 2 gross (1.7 net) TMS wells drilled and waiting on completion. Our net production volumes from our TMS wells represented approximately 33% of our total equivalent production on a Boe basis and approximately 100% of our total oil production for the third quarter of 2016.”
Haynesville shale
“Our development acreage in this trend is primarily centered in Angelina and Nacogdoches counties, Texas and DeSoto and Caddo parishes, Louisiana. We held approximately 52,000 gross (24,000 net) acres as of September 30, 2016 producing from and prospective for the Haynesville Shale Trend. Our net production volumes from our Haynesville Shale Trend wells represented approximately 65% of our total equivalent production on a Boe basis for the third quarter of 2016.”
Eagle Ford shale
“We closed the sale of our Eagle Ford Shale Trend proved reserves and a portion of the associated leasehold on September 4, 2015. We retained approximately 17,000 net acres of our undeveloped leasehold, all of which is prospective for future development or sale.”
Q3 2016 results
For the three months ended September 30, 2016, Goodrich reported net loss applicable to common stock of $19.1 million, or $0.24 per basic and diluted share, on total revenue of $7.2 million as compared to a net loss applicable to common stock of $25.2 million, or $0.44 per basic and diluted share, on total revenue of $17.7 million for the three months ended September 30, 2015.
The Goodrich 10Q for the period ending Sept. 30, 2016, is available here. Current financial disclosure and Real-Time Level 2 quotes for Goodrich Petroleum are on www.otcmarkets.com, under the ticker symbol GDPP.
