Why Goodrich Petroleum's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil and gas company Goodrich Petroleum jumped 19% today after releasing drilling results.
So what: The company announced that its Crosby 12H-1 well in Wilkinson County, Miss., is now producing 1,250 barrels of oil equivalent per day. The shale formation this well is drilled in is up to 3 miles below the earth's surface and may hold 7 billion barrels of oil, a huge potential for Goodrich.
Now what: Goodrich owns 50% of this well along with 25% interests for Encana and Contango Oil & Gas . This is big news because the company's last well in the Tuscaloosa formation wasn't successful. Considering the potential production, I think Goodrich can continue to move higher from here as it continues to explore the region.
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The article Why Goodrich Petroleum's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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