Goodrich Petroleum’s shares have collapsed 86 per cent since crude oil began its descent in June.
With a market value of $182m it’s a small company, but the US oil and gas driller is typical of the sort that investors have fled from during the six-month rout in crude.
The company, which drills shale rock for oil and gas in Louisiana, Mississippi and Texas, said on Wednesday that it’s exploring the sale of its Eagle Ford Shale play.
Goodrich’s decision to offload the field comes on top of the $61m sale of its East Texas Cotton Valley Field.
The company said:
With a preliminary 2015 capital expenditure budget of $150 – 200 million, the company is estimating it has sufficient projected liquidity under current market conditions, borrowing base and capital structure to execute its 2015 capital plan.
Last month’s decision by Opec, the oil production cartel, not to cut supply of crude has left many analysts believing that its members want to slow the growth of production in the US, where new techniques have allowed companies to drill for previously inaccessible oil in shale rock.
Here Ed Crooks, US energy editor examines the endurance test facing the US shale industry.