Goodrich Petroleum Announces 2005 Capital Expenditure Budget
24 December 2004 - 12:53AM
PR Newswire (US)
Goodrich Petroleum Announces 2005 Capital Expenditure Budget
HOUSTON, Dec. 23 /PRNewswire-FirstCall/ -- Goodrich Petroleum
Corporation today announced that its Board of Directors has
approved a preliminary 2005 capital expenditure budget of
approximately $75 million. The Company's planned capital
expenditure program for 2005 represents an increase of
approximately 75% over estimated 2004 capital expenditures of
approximately $42 million. The 2005 budget includes the following
major components: * Approximately $48 million for accelerated
development of the Company's acreage in the Cotton Valley Trend of
East Texas and Northwest Louisiana, which the Company considers
lower risk drilling activities. The Company has budgeted
approximately 35 wells during 2005, which represents a 133%
increase over the 15 wells drilled and completed in 2004. *
Approximately $21 million for moderate risk exploitation projects
generated from the Company's existing 3-D seismic database,
primarily on the Company's core properties in the transition zone
of South Louisiana; and * Approximately $6 million for additional
3-D seismic data acquisition and exploration activities. The
Company plans to fund the 2005 capital expenditure budget primarily
through a combination of projected cash flow from operations and
bank borrowings under the Company's existing senior credit
facility, as well as an anticipated expansion of the facility
pursuant to an existing term sheet. Commenting on the Company's
2005 capital expenditure budget, the Company's Vice-Chairman and
CEO, Walter G. "Gil" Goodrich stated, "The results we have
experienced thus far in the Cotton Valley Trend, which now include
approximately 15 wells either logged and/or online and producing
with a 100% success rate, are within the range of our expected
results at this stage of development. As a result, the board has
approved a preliminary capital expenditure budget which will allow
us to significantly accelerate the development of the play and our
existing acreage position." Certain statements in this news release
regarding future expectations and plans for future activities may
be regarded as "forward-looking statements" within the meaning of
the Securities Litigation Reform Act. They are subject to various
risks, such as financial market conditions, operating hazards,
drilling risks, and the inherent uncertainties in interpreting
engineering data relating to underground accumulations of oil and
gas, as well as other risks discussed in detail in the Company's
Annual Report on Form 10-K and other filings with the Securities
and Exchange Commission. Although the Company believes that the
expectations reflected in such forward looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. Goodrich Petroleum is an independent
exploration and production company listed on the New York Stock
Exchange. The majority of its oil and gas properties are in
Louisiana and Texas. DATASOURCE: Goodrich Petroleum Corporation
CONTACT: Robert C. Turnham, Jr., President, or D. Hughes Watler,
Jr., Chief Financial Officer, both of Goodrich Petroleum
Corporation Web site: http://www.goodrichpetroleum.com/
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