Goodrich Petroleum Corp. said it plans to have a "robust" second half of 2018, ramping up production and continuing its focus on the Haynesville Shale, where it is less than one month away from bringing two natural gas wells online in northwestern Louisiana.

Goodrich reported increasingly gassy production. Total production was 5.51 Bcfe (60,582 Mcfe/d) in 2Q2018, a 67.1% year/year, with natural gas accounting for 94% up from 85%. Conversely, oil and condensate production declined 32% to 57,000 bbl from 84,000 bbl in 2Q2017.

The company said to date 3Q2018 production has averaged 75,500 Mcfe/e, 96% weighted to gas. Goodrich expects to exit 2018 at a production rate of about 100,000 Mcfe/d, with preliminary guidance of 140,000 Mcfe/d for 2019.

Two Haynesville wells are expected to come online within the next 30 days. The Demmon 34H-1, targeting the Bethany-Longstreet field in DeSoto Parish, was drilled with a 4,600-foot lateral and was hydraulically fractured (fracked) in 45 stages. Flowback from the well, in which Goodrich holds an 89% stake,is expected to begin in the next week.

The second well, Harris 14&23 No. 1 in Red River Parish was drilled with a 7,000-foot lateral. The well is currently running production casing and is expected to be completed within 30 days with 69 frack stages planned. Goodrich holds a 98% interest in the well.

Goodrich currently has two rigs deployed in the Haynesville. The first is drilling the Loftus 27&22-1 well (89% interest), which is to have a 7,500-foot lateral, in DeSoto Parish, while the second would move to drill the Cason-Dickson 14&23 Nos. 3 and 4 (85%) wells in Red River Parish once the Harris well is complete. Both wells are to be drilled with 10,000-foot laterals from a common pad.

Goodrich also indicated that it is looking for bolt-on opportunities in the North Louisiana portion of the Haynesville, where it currently holds 38,500 gross (19,000 net) acres. In total, the Houston operator holds about 22,000 net acres in the Haynesville, including 8,000 gross (3,000 net) acres in the Shelby Trough/Angelina River Trend in East Texas, which is also prospective to the Bossier Shale.

Elsewhere, the company at the end of 2017 held 60,000 gross (43,000 net) acres in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana and 32,500 gross (14,000 net) acres in the Eagle Ford Shale in South Texas. Goodrich entered into three separate agreements in May to sell a portion of its assets in the TMS in Louisiana for $3.3 million.

Capital expenditures (capex) totaled $31 million in 2Q2018, including $29.3 million on drilling and completion costs, all of which were devoted to the Haynesville.

The Houston-based independent also unveiled a preliminary capex budget of $125-150 million for 2019, as it plans to more than double production. By comparison, the company expects to spend $85-95 million on capex this year.

Goodrich reported a net loss of $2.7 million (minus 23 cents/share) in 2Q2018, compared with a net loss of $1.2 million (minus 13 cents) in the year-ago quarter. The company said earnings were impacted by a $2 million one-time loss on commodity derivatives. Revenues totaled $17.8 million, compared to $12.5 million in 2Q2017.