Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil and gas company Goodrich Petroleum (NYSE: GDP) jumped 19% today after releasing drilling results.
So what: The company announced that its Crosby 12H-1 well in Wilkinson County, Miss., is now producing 1,250 barrels of oil equivalent per day. The shale formation this well is drilled in is up to 3 miles below the earth's surface and may hold 7 billion barrels of oil, a huge potential for Goodrich.
Now what: Goodrich owns 50% of this well along with 25% interests for Encana (OVV 1.13%) and Contango Oil & Gas (MCF). This is big news because the company's last well in the Tuscaloosa formation wasn't successful. Considering the potential production, I think Goodrich can continue to move higher from here as it continues to explore the region.
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