Tuesday, May 22, 2012

Goodrich Gets TMS Press

Goodrich Petroleum received a nice endorsement regarding the Tuscaloosa Marine Shale yesterday.

"Goodrich Petroleum (NYSE: GDP) is seeing sharp upside Monday, which is being attributed to takeover speculation sparked by analysts.  Canaccord Genuity analyst John Gerdes said the 'stock could triple' with success at its Tuscaloosa Marine Shale play.  'Goodrich closed Friday with a market capitalization of ~$500 million. With follow-on drilling success, we believe Goodrich should be able to sell a 25% interest in its ~103,000 net acre Tuscaloosa leasehold for $5,000 per acre, or ~$125 million,' Gerdes said. 'Additionally, Goodrich would likely raise $100-150 million in equity to fund the ~$175 million increase in capital spending. Under this scenario, our target price would likely increase ~50% to ~$40/share.'  The Tuscaloosa play may be too large for Goodrich to develop alone and 'a larger entity could buy Goodrich in its entirety or the company could enter into a joint venture and issue equity to fund Tuscaloosa development,' the analyst also said."
http://www.streetinsider.com/Analyst+Comments/Goodrich+Petroleum+(GDP)+Rips+Higher+as+Analyst+Sees+a+Triple,+and+Possible+Takeover/7457565.html

 

1 comment:

  1. Is it possible for Devon to drill over twenty wells with in the next three years with only two rigs?Or will they sell there leases and move on.

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