High oil prices make oil shale properties more economic.
Goodrich Petroleum Corporation (NYSE: GDP, Stock Forum) has been on a tear. It trades at over $50, very near its 52-week high. CapitalOne southcoast has upgraded the stock.
GDP just announced the acquisition of additional interests in the Cotton Valley trend in east Texas, which increases its net exposure in Louisiana’s Haynesville Shale to approximately 30,000 net acres. This means the firm has more access to shale oil assets which are starting to become an attractive alternative to crude, especially with prices at over $130.
Total revenues for the Q1 period increased by 97% to $46.4 million, versus $23.5 million for the prior year period. Operating income was $3.6 million compared to a loss of $7.3 million a year ago.
GDP said it expected daily production volumes to move up modestly in the current quarter.
If shale oil continues to be a potential source of new and cost-efficient energy GDP may go higher.
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