Goodrich Petroleum Announces 2012 Capital Expenditure Budget and Guidance

Goodrich Petroleum Corporation (NYSE: GDP) today announced its preliminary capital expenditure budget for 2012, along with production and cash flow guidance for the year.

The Company today announced a preliminary capital expenditure budget for 2012 of $250 – $275 million, which includes $235 – $260 million in drilling and completion expenditures and $15 million allocated to leasehold and infrastructure expenses. The Company anticipates drilling 49 gross (29 net) to 54 gross (32 net) wells for the year, with approximately 75% of the anticipated drilling and completion capital expenditures allocated to oil directed activity.

Oil directed activity will be concentrated in the Eagle Ford Shale trend with $155 million allocated to 29 gross (19 net) wells (which assumes a combination of 6,000 to 9,000 foot laterals), and the Tuscaloosa Marine Shale trend, with $20 – $45 million allocated to 4 gross (2 net) to 6 gross (4 net) wells.

Of its natural gas directed activity, the Company anticipates completing 14 gross (6 net) non-operated Haynesville Shale wells previously drilled in the core of the play for $35 million, along with $25 million associated with 2 gross (2 net) Angelina River Trend wells.

Capital expenditures in 2012 in the Eagle Ford Shale trend will be positively impacted by the elimination of the drilling carry associated with the Company's leasehold acquisition equal to a 20.8% working interest in the vast majority of the wells drilled in 2011, along with a reduction in drilling and completion costs of an estimated $2.5 million per well as a result of pad drilling, zipper fracs and lower pressure pumping prices.

The Company estimates oil volumes to grow by 130 – 160% in 2012 versus 2011, which will drive very strong cash flow growth. Natural gas volumes are expected to be flat to slightly down, while overall production on a Mcfe basis is expected to increase by 10 – 15% over 2011. Oil volumes are estimated to grow to approximately 5,000 barrels per day as the Company exits 2012.

Goodrich's Chief Executive Officer, Walter G. "Gil" Goodrich stated, "A little over a year ago, we initiated a significant transformation from a capital program dominated by gas-directed drilling activity to one dominated by crude oil-directed drilling. The strategic shift to oil-directed activity has already produced very positive results in 2011 with cash flow on pace to grow by approximately 65% compared to 2010.

Our plans for 2012 will accelerate this transformation with oil-directed activity comprising approximately 75% of our 2012 drilling and completion budget and gas-directed activity representing the minimum necessary to complete a number of gas wells drilled in 2011 and maintain our acreage position in the Angelina River Trend.