Goodrich Petroleum Corp. announced the completion of an Encana Corp.-operated well in the Tuscaloosa Marine Shale (TMS) in which it holds a minority interest. Initial production was lower than other recent wells in the play but still apparently economic and boding good things to come from the TMS, one analyst said Tuesday.

Goodrich said the Encana-operated Anderson 173 (7% working interest) well flowed at a maximum 24-hour average rate of 915 boe/d (94% oil). Both the nonoperated Anderson 172 (7% WI) well, which was previously reported at 1,540 boe/d, and the Anderson 173 well have been on an accelerated choke schedule in preparation of the installation of downhole pumps which have the potential of moving high fluid volumes, the company said.

“The 173 result came in comparatively lower than recent wells that have averaged 1,300 boe/d, which could pressure shares at the open,” said Wells Fargo analyst Gordon Douthat, who added that the well is still economic assuming a $13 million cost.

“…[I]n our view, another data point that helps confirm the TMS’s repeatability,” Douthat said. “In comparison to prior Anderson wells, the 171 had 72-hour average production of 1,083 boe/d with a 7,200-foot lateral, while Anderson 172 had a 24-hour average of 1,540 boe/d with a 5,193-foot lateral and important to note that the Anderson 171 and 172 wells were landed below the rubble zone, while Anderson 173 was landed above the rubble zone.”

Goodrich shares were off slightly at midday Tuesday.

Goodrich also announced updated production for its company-operated Smith 5-29-1 well (98% WI), which has averaged 850 boe/d (94% oil) over 25 days. Douthat said the Smith well was performing in line with the company’s high case type curve.

The company has closed on the previously announced acquisition of a 66.7% working interest in 277,000 gross acres and 750 boe/d effective March 1 (see Shale Daily, July 23). The closing price after adjustments was $23.7 million, which was funded with cash. At closing the company’s borrowing base increased to $243 million, with nothing currently drawn. Goodrich said it will spud its initial well on the acquired acreage in October.

Earlier this month, Goodrich said it would be reallocating some capital from its Eagle Ford Shale program to the TMS, which it said has grown in promise (see Shale Daily, Aug. 8).