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Petroleum industry

Goodrich Petroleum Completes Sale of Penske Corporation Investment for $9.6 Million

Strategic Insights

— 1 min read

Goodrich Petroleum Corporation announced the completion of the sale of its remaining investment in Penske Corporation for $9.6 million. This transaction will result in no gain or loss to Goodrich due to its fair value recording upon its merger with Patrick Petroleum Company last month. The company plans to use the proceeds to pay down debt and focus on its primary business, oil and gas exploration and production.

Key Takeaways:

  • Goodrich Petroleum completed the sale of its remaining investment in Penske Corporation for $9.6 million.
  • The transaction will result in no gain or loss to Goodrich due to its fair value recording upon its merger with Patrick Petroleum Company.
  • The proceeds from the sale will be used to pay down debt incurred under the Company's line of credit.
  • Goodrich reported the status and current production rates of the Company's operations in the Sean Andrew Field, West Texas, with six wells producing at approximately 1,260 barrels per day.
  • Goodrich owns an approximate 37.5% working interest in the Sean Andrew Field and has proposed the drilling of a seventh well, which is expected to commence operations by October 1, 1995.
  • Goodrich, as operator, has proposed the drilling of a seventh well and anticipates commencing operations by October 1, 1995.
  • Goodrich President and Chief Executive Officer, Walter G. Goodrich, emphasized the company's focus on oil and gas exploration and production.

Statistics:

  • $9.6 million: The sale price of the remaining investment in Penske Corporation.
  • $9.5 million: The approximate amount of debt reduced by the sale.
  • 37.5%: Goodrich's working interest in the Sean Andrew Field.
  • 6: The number of wells currently producing from the Pennsylvanian Reef at approximately 1,260 barrels per day.
  • 1,260 barrels: The daily production rate of the six wells in the Sean Andrew Field.
  • October 1, 1995: The expected commencement date for operations of the seventh well in the Sean Andrew Field.

Sources:

  • Goodrich Petroleum Corporation press release, September 18, 1995.
  • CONTACT: Roland Frautschi or Glynn Williams of Goodrich Petroleum, 318-429-1375.

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