HOUSTON, Oct. 6 /PRNewswire-FirstCall/ -- Goodrich Petroleum Corporation has recently added to its existing hedge position by executing a zero cost collar on 10,000 MMBtu per day for a three year period including all of 2010, 2011, and 2012. Under the terms of this transaction, the Company put in place a floor of $6.00 per MMBtu and a ceiling of $7.40 per MMBtu.
The transaction increases the Company's total 2010 volumes hedged to 20,000 MMBtu per day at a floor price of $6.00 and an average ceiling price of $7.275. These hedges are in addition to the Company's hedges in place for the remainder of 2009 of 60,000 MMBtu per day at an average swap and floor price of $8.61. Additionally, the Company has hedged a portion of its East Texas basis exposure at $0.47 per MMBtu on 60,000 MMBtu per day for the remainder of 2009, and at $0.37 per MMBtu on 50,000 MMBtu per day for calendar year 2010.
The Company also realized gains on its commodity derivative portfolio for the just-completed third quarter of approximately $27.6 million.
OTHER INFORMATION
Certain statements in this news release regarding future expectations and plans for future activities may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as financial market conditions, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels.
Goodrich Petroleum is an independent oil and gas exploration and production company listed on the New York Stock Exchange. The majority of its properties are in Louisiana and Texas.
Goodrich Petroleum Corporation
CONTACT: Robert C. Turnham, President, or David R. Looney, Chief
Financial Officer, both of Goodrich Petroleum Corporation, +1-713-780-9494,
fax, +1-713-780-9254
Web Site: http://www.goodrichpetroleum.com/
