Yesterday, Goodrich Petroleum
Maybe somebody down there took my heckling to heart. In this latest release, Goodrich says its new well "produced into sales at a 24 hour initial production rate of 9.3 MMcf per day on a 24/64 inch choke with 5,200 psi." That wording, which specifies a time period and actual production from the wellhead into the sales line, is certainly an improvement over Goodrich's past releases.
Still, Goodrich hasn't gotten onto my good side just yet. As I said last time, companies need to provide 30-day production data. Anything less is just too light on information for my taste, particularly when we're talking about wells that decline as fast as these Haynesville gushers.
To illustrate the hype potential of these initial production rates, let's take Goodrich's first of three East Texas Haynesville completions back in May. This was reported to have "tested" at a rate of 7 million cubic feet per day. As we learned in June, Texas requires a 72-hour test to determine the deliverability potential of a well. That state data recently became available, and guess what? This well didn't produce at 7 million. Or 6 million. Or 5 million.
No, the J.K. Williams 7H potentialed at just under 2.5 million cubic feet per day. That's a woefully inadequate rate for a pricey Haynesville well.
Fortunately, Goodrich is seeing some better results on the Louisiana side of the play, with partner Chesapeake Energy
Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his CAPS profile or follow his articles using Twitter or RSS. The Motley Fool owns shares of Chesapeake, and has a delightful disclosure policy.
More from The Motley Fool
Why GT Advanced Technologies, Pandora Media, and Goodrich Petroleum Tumbled Today
The stock market fell back on Monday from its record highs set last week, but the market's losses were a lot more modest than the drops in these three stocks. Find out why.
Is Halcon Resources Set for Meaningful Growth?
While Halcon Resources’ latest operational update looks good, it may be prudent to step back and view the larger picture.
This New Oil Play Still Looks Good
Goodrich Petroleum is out with its latest well results for the Tuscaloosa Marine Shale. Solid results suggest the play just might be the oil play that can fuel returns for Goodrich, Halcon Resources and Encana.