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HOUSTON & OKLAHOMA CITY--(BUSINESS WIRE)--June 16, 2008--Goodrich
Petroleum Corporation (NYSE:GDP) and Chesapeake Energy Corporation
(NYSE:CHK) today announced they have entered into a joint venture to
develop Goodrich's Haynesville Shale acreage in the Bethany-Longstreet
and Longwood fields of Caddo and DeSoto Parishes, Louisiana.
Subject to customary due diligence, Chesapeake has agreed to pay
Goodrich approximately $178 million for the deep rights to
approximately 10,250 net acres of oil and natural gas leasehold
comprised of a 20% working interest in approximately 25,000 net acres
in the Bethany-Longstreet field and a 50% working interest in
approximately 10,500 net acres in the Longwood field. Chesapeake has
also agreed to purchase 7,500 net acres of deep rights in the
Bethany-Longstreet field from a third party, bringing the ownership
interest in the deep rights in both fields after closing to 50% each
for Goodrich and Chesapeake. Chesapeake will be the operator of the
joint venture for the Haynesville Shale development and closing is
expected to occur on or before July 15, 2008. Goodrich is retaining
the shallow rights (through the base of the Cotton Valley sand) and
the existing production and reserves with respect to its 70% interest
in the Bethany-Longstreet field and its 100% interest in the Longwood
field and is retaining its interest in both the shallow and
Haynesville Shale rights on all of its East Texas assets.
Horizontal development of the Haynesville Shale for the joint
venture is expected to commence in the 2008 third quarter with one rig
dedicated to the play and a second rig to be added during the 2008
fourth quarter.
Gil Goodrich, Goodrich's Vice Chairman and Chief Executive Officer
commented, "This is a tremendous transaction for Goodrich Petroleum
Corporation and its shareholders. We are delighted to become a partner
with Chesapeake, the premier operator in the Haynesville Shale play.
The proceeds we will receive upon closing will greatly strengthen our
balance sheet, provide capital to begin aggressive development of the
Haynesville Shale and allow us to maintain an active development
program across our entire Cotton Valley trend acreage."
Aubrey K. McClendon, Chesapeake's Chief Executive Officer stated,
"Chesapeake is very pleased to announce this joint venture with
Goodrich. The acreage we are acquiring is well located in the heart of
the Haynesville Shale play and we believe that it will be highly
productive. We currently anticipate drilling up to 440 horizontal
Haynesville Shale wells on this acreage with Chesapeake and Goodrich
each owning 50% of the wells. We are aware that many other companies
competed with us for this opportunity and we appreciate that Goodrich
elected to partner with Chesapeake. We believe this will be a very
successful venture for both companies and we are eager for drilling to
commence in the next few months."
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 Private
Securities Litigation Reform Act of 1995. 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 Annual Reports on
Form 10-K and other filings with the Securities and Exchange
Commission made by Goodrich and Chesapeake. Although the companies
believe that the expectations reflected in such forward looking
statements are reasonable, they can give no assurance that such
expectations will prove to be correct.
Goodrich Petroleum Corporation is an independent exploration and
production company listed on the New York Stock Exchange. The majority
of its oil and gas properties are in Louisiana and Texas.
Chesapeake Energy Corporation is the third-largest producer of
natural gas in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and
corporate and property acquisitions in the Fort Worth Barnett Shale,
Fayetteville Shale, Haynesville Shale, Mid-Continent, Appalachian
Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast
and Ark-La-Tex regions of the United States. Chesapeake's Internet
address is www.chk.com.
CONTACT: Goodrich Petroleum Corporation
Robert C. Turnham, 713-780-9494
President
robert.turnham@goodrichpetroleum.com
or
David R. Looney, 713-780-9494
Chief Financial Officer
david.looney@goodrichpetroleum.com
or
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Senior VP - Investor Relations and Research
jeff.mobley@chk.com
or
Marc C. Rowland, 405-879-9232
Executive VP and Chief Financial Officer
marc.rowland@chk.com
SOURCE: Goodrich Petroleum Corporation & Chesapeake Energy
Corporation