Goodrich Petroleum Gains on Tuscaloosa Well Output: Dallas Mover

Goodrich Petroleum Co., an independent oil and natural gas producer with properties in five states, rose the most in more than four years after a well in the Tuscaloosa Marine Shale began producing the equivalent of 1,250 barrels of crude a day.

Goodrich increased 18 percent to $12.56 at the close in New York, the most since Nov. 21, 2008.

Goodrich’s Crosby 12H-1 well in Wilkinson County, Mississippi, had initial production of 1,050 barrels of oil a day and 469,000 cubic feet of gas, according to a statement today. Encana Corp. and Contango Oil & Gas Co. each own a 25 percent working interest in the well.

“We think this is a solid well for Goodrich,” Michael Hall, an analyst for Robert W. Baird & Co., wrote in a note to clients. It’s the company’s second operated well in the Tuscaloosa, and its first successful well, he said in an e-mail.

The Tuscaloosa, a dense rock formation similar in age to the Eagle Ford Shale in Texas, lies as much as 15,000 feet (4,570 meters) below parts of Louisiana and Mississippi, and may hold 7 billion barrels of oil, according to the Louisiana Department of Natural Resources. Like other shale formations, it requires a combination of horizontal drilling and hydraulic fracturing to release the trapped oil and gas.

Other companies exploring the Tuscaloosa formation include Devon Energy Inc. and EOG Resources Inc.

To contact the reporter on this story: Mike Lee in Dallas at mlee326@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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