Goodrich Petroleum Corp. was active in the Haynesville from the outset and is now investing in oil development in the Eagle Ford.
Much of the company's growth, according to Robert C. Turnham, president and COO, came from a successful drilling program. "Goodrich has actively grown through the drill bit," he said, noting, "We've grown pretty rapidly over the years."
Of course a lot of things are working in favor of onshore oil development in this region, Turnham said, including the deepwater moratorium in the Gulf of Mexico and the slowing of Gulf of Mexico shallow-water activity.
Goodrich is working in the Eagle Ford oil window where it has a core acreage position of 268,000 gross acres, primarily in southeast Frio Country and northeast LaSalle County. According to Turnham, EOG, El Paso, and Chesapeake also are active in this part of the Eagle Ford shale.
Turnham expects good results from the acreage, which he says exhibits excellent rock properties and very good porosity. The matrix permeability and fracture complexity of the play allows for storage and flow, he said.
This portion of the Eagle Ford has large accumulations of oil in place – 25 to 55 MMBOE per 640 acres.
"It's early innings now," Turnham said, but things look very positive. Estimated recovery has been placed at 300 to 400 MMBOE.
Turnham talked at length about Goodrich's Buda well, noting that the well required 22 days of drill time and was 30 days spud-to-spud. "The economics are outstanding," he said. Although Buda has not yet been modeled, Turnham is optimistic about production results.
"The Eagle Ford shale has great leverage to our company," he said, pointing to "repeatable plays" as a driver. "If we continue to make these types of wells, we'll spend $100 million in the Eagle Ford next year."
In short, the impact of the favorable conditions in the Eagle Ford on Goodrich is a transfer of company focus. "I think you'll continue to see rigs move out of the Haynesville," Turnham said.
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