GDP will have expanding margins on 2008 due in part to falling rig rates and completion services.
Goodrich is mainly in Cotton Valley Trend – 267 wells drilled through 2007 – 96,000 Mcfe per day is production rate currently. Core properties straddle Texas- Louisiana border.
Company is drill bit only – no acquisitions needed or planned.
Bethany Longstreet area in Louisiana – 18,700 net acres. Have been developing for several years.
Haynesville Shale – a highly gas saturated gas section - early in play – will be watching it over the next few months.
Longwood Area – 9300 net acres – monitoring development ongoing here.
Angelina River Play – Travis Peak and James Lime is target – 35 Travis and 4 James Lime wells on line currently – 40,100 net acres.
2008 drilling program:
115 wells – $ 275 million cost
GDP believes they have 1500 net locations to drill in inventory.
GDP is a big believer in hedging particularly given the margins in the areas that they drill.
359 Bcfe proved reserves – 125,000 net acres – 267 wells drilled in Cotton Valley Trend.
$250 million in debt and $283 million in total equity.
Employees own 42% of company.
NAV on proven basis is expanding rapidly – as probable reserves are converted to proved.
Tuesday, April 8, 2008