Yesterday, Goodrich Petroleum (GDP) delivered two important announcements related to its Tuscaloosa Marine Shale ("TMS") operation. First, the company posted yet another very impressive production test result achieved at a reasonable well cost. Second, Goodrich emerged as the acquirer of Devon's (DVN) 185,000 net acres in the TMS. Quite notable is the price tag of the acquisition: $26.7 million, which includes 750 boe/d of existing production. While lease expirations and quality of some of Devon's acreage may partially explain the strikingly low purchase price (undeveloped acreage appears to come essentially for free), the transaction looks like a remarkable bargain for Goodrich.
The absence of a meaningful stock price reaction during yesterday's trading session may reflect...
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