After stumbling a bit with a challenging and disappointing well in the Tuscaloosa Marine Shale (TMS), Goodrich Petroleum Corp. on Monday reported its latest producer, which is apparently benefiting from a back to basics strategy the company is applying in the play.
Goodrich completed its CMR 8-5H-1 (100% working interest) well in Amite County, MS. The well achieved a peak 24-hour average production rate to date of 950 boe/d, made up of of 900 bbl of oil and 300 Mcf of gas, and has produced an average of 900 boe/d over six days. The well, which landed in the company's lower target, has approximately 5,300 feet of lateral and was hydraulically fractured (fracked) with 20 stages using composite plugs that were drilled out prior to flowback.
It's "still early innings and plenty that's not understood about the TMS play, but [we] like the 'back to basics' approach," BMO Capital Markets analysts said in a note on the latest Goodrich well results. "It's only one well, but we believe it picks up where the company left off with Smith producer. Consistency matters in this business. [It] also helps clear the way for greater refinement of technique, potentially resulting in higher yields on lower costs."
Goodrich's Smith well results were announced last summer. During the early flowback stage, after six days, the well had a 24-hour average rate of 1,045 boe/d (see Shale Daily, July 29, 2013).
BMO added that the recent entry into the TMS of Halcon Resources Corp. (see Shale Daily, Feb. 27) also should benefit the industry's understanding of the emerging play. TMS acreage holder Sanchez Energy Corp. said earlier this month it has been watching industry activity in the play as it prepares to drill its first TMS well. "We're as high as ever on the TMS," CEO Tony Sanchez told analysts during an earnings conference call (see Shale Daily, March 7).
Goodrich also said Monday that its troubled Weyerhaeuser 51-H-1 (66.7% WI) well in St. Helena Parish, LA, is in the early stage of flowback and is not expected to have a peak rate as high as previously drilled wells. Goodrich experienced mechanical issues with the well and did not get all of the permanent frack plugs drilled out.
Goodrich is currently fracking its Blades 33H-1 (66.7% WI) well in Tangipahoa Parish, LA. The Blades 33H-1 well was drilled to total depth in 36 days, landed in the company's lower target and has a lateral length of about 5,100 feet. Goodrich is using composite plugs with plans to drill them out prior to flowback, similar to the CMR 8-5H-1 well.
The Company is drilling the C.H. Lewis 30-19H-1 (81.4% WI) and Nunnery 12-1H-1 (91.2% WI) wells in Amite County, as well as the Beech Grove 94H-1 (66.7% WI) well in East Feliciana Parish, LA. All wells are planned for 6,000-foot laterals or longer in the lower target and will use composite frack plugs to be drilled out prior to flowback.
Currently, the company has more than 300,000 net acres and three rigs running in the play, with a plan to go to five rigs by the end of the year "pending continued success."