Goodrich Petroleum buying La. acreage for $26.7M

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Associated Press

Posted on July 22, 2013 at 6:00 AM

Updated Monday, Jul 22 at 8:02 AM

HOUSTON (AP) — Oil and natural gas company Goodrich Petroleum is paying $26.7 million for a working interest in producing assets and about 277,000 gross acres in Louisiana.

Goodrich Petroleum said Monday that once that transaction closes it will own approximately 320,000 net acres in the Tuscaloosa Marine Shale.

CEO Walter Goodrich said in a statement that the deal has helped the company greatly expand its acreage and exposure to the shale.

Goodrich Petroleum Corp. will have a 66.7 percent working interest in producing assets in the shale. An unnamed company will be keeping the remaining working stake and will work with Goodrich Petroleum in developing the assets.

Goodrich Petroleum, which is based in Houston, plans to fund the acquisition with its senior credit facility.

The deal is expected to close by Aug. 22.

Goodrich Petroleum shares finished at $14.53 on Friday. They are down 10 percent from their mid-March high of $16.18. They have traded as low as $7.77 in mid-November.

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