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.