Goodrich Petroleum To Buy 66.7% Working Stake In Producing Assets - Quick Facts

(RTTNews) - Goodrich Petroleum Corp. (GDP) has agreed to acquire a 66.7% working stake in producing assets and about 277,000 gross acres in the Tuscaloosa Marine Shale or "TMS" for $26.7 million, effective March 1, 2013. The rest of 33.3% working interest owner in the producing assets and leasehold has elected to retain its interest and participate with the Company in developing the assets. The acquisition may close on or before August 22, 2013.

The gross oil production related to the properties averaged roughly 750 barrels of oil per day for March 2013. At closing, the firm would own around 320,000 net acres in the TMS when combined with its current position. Also, the company said it would prioritize the acreage with the ultimate number of retained acreage to be based on geologic location, timing and amount of lease extension payments, and future rate of development of the play.

Goodrich Petroleum intends to fund the acquisition with its senior credit facility, which along with available cash had some $190 million of available liquidity pro forma at March 31, 2013. Following the deal completion, the firm's borrowing base would increase by $18 million to $243 million.

In addition, Goodrich Petroleum announced the closing of its Smith 5-29H-1 well in Amite County, Mississippi, around 36 miles east of its Crosby well.