Goodrich Pete in Drilling Agreement to Expand Cotton Valley Operationsadmin
Goodrich Petroleum Corp., an oil and gas exploration company, said Monday it reached an agreement to drill wells on property it does not own in Bienville Parish, La., expanding its operations in the Cotton Valley region.
Under the deal, Goodrich, which primarily has operations in Louisiana and Alabama, has the right to explore for natural gas and oil on 21,000 acres held by an undisclosed owner, who will receive lease payments and 25 percent royalties. Goodrich will have a 75 percent net revenue interest.
Goodrich will also own 100 percent of the first well drilled on each 33 partitions of the acreage. The land owner gets the right to buy in for up to 50 percent of any subsequent wells.
The land is in the Alabama Bend field of Bienville Parish, which is in the company’s portion of Cotton Valley, which stretches across east Texas and northern Louisiana. Last week, Goodrich purchased land and wells for $6.1 million in the Cotton Valley trend in Texas.