Goodrich Petroleum Corporation (OTCMKTS:GDPM) has been highly volatile since landing on the OTC last week. The stock has been trading big volume too becoming a staple on the top most traded stocks on the exchange.
GDPM was delisted from the NYSE on January 8 due to “abnormally low” trading price levels and failing to meet the exchange’s minimum $1 bid requirement. The Company said in a statement that they will not appeal the delisting.
Goodrich Petroleum Corporation (OTCMKTS:GDPM) bills itself as an independent exploration and production company engaged in the exploitation, development and production of crude oil and natural gas primarily in the Tuscaloosa Marine Shale in Eastern Louisiana and Southwestern Mississippi, the oil-window of the Eagle Ford Shale trend in South Texas and the Haynesville Shale in Northeast Texas and Northwest Louisiana.
Due to the current natural gas price environment, the Company is concentrating the vast majority of its exploitation and development efforts on existing leased acreage, primarily within the Tuscaloosa Marine and Eagle Ford Shale formations, that are both prospective for crude oil. The Company owns working interests in 260 producing oil and natural gas wells located in 43 fields in eight states. At December 31, 2014, GDPM had estimated proved reserves of approximately 273.7 Bcfe, comprised of 104.8 Bcf of natural gas, 1.0 MMBbls of NGLs and 27.1 MMBbls of crude oil and condensate.
GDPM is the largest operator in the TMS, located across Louisiana through parts of Mississippi. The Company is less economical for producers due to the early stages of development along with geological challenges and varying degrees of clay and silt as well as inconsistent results.
The Company said last week it plans to cut 225 jobs in its home state. Goodrich Petroleum joins SandRidge Energy who was delisted to the OTC last week.
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On December 21 GDP announced In connection with their recent tender offer and issuance of depositary shares, each representing a 1/1000th ownership interest in a share of the Company’s new 10.00% Series E Cumulative Convertible Preferred Stock. the Company has arranged for the filing of Form 211 to initiate the listing of the Series E Preferred Stock on the OTC Global Markets, Inc.
After the Series E Preferred Stock is authorized to trade on the OTC, the Company will set a record date for the payment of the initial dividend on the Series E Preferred Stock within three days of the authorization date and dividend payment date within three days of the record date, which dividend will be paid in shares of the Company’s common stock. In addition, according to the terms of the Series E Preferred Stock, it may be converted at any time into shares of the Company’s common stock at a rate of 5.0 shares of the Company’s common stock for each depositary share of Series E Preferred Stock.
Everything seemed ok on December 1 when GDPM said the New York Stock Exchange had accepted the Company’s plan for continued listing on the NYSE. The continued listing is subject to quarterly reviews by the NYSE’s Listing and Compliance Committee to ensure the Company’s progress toward its plan.
On January 26 GDPM announced it has commenced offers to exchange newly issued shares of common stock, par value $0.20 per share for any and all of its Existing Unsecured Notes and for any and all shares of its Existing Preferred Stock.
The Company has also announced it intends to offer to exchange its Second Lien Notes into new second lien notes with materially identical terms except that interest thereon may be paid either (a) at the Company’s option in cash or in-kind or (b) deferred until maturity.
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Currently trading at a $3.3 million market valuation GDPM has just $4 million in the treasury and significant fast rising debt. There are plenty of reasons to get excited about GDPM; the Company is the largest operator in the Tuscaloosa Marine Shale in Eastern Louisiana and Southwestern Mississippi and is currently focusing its efforts on existing leased acreage, primarily within the Tuscaloosa Marine and Eagle Ford Shale formations, that are both prospective for crude oil. We will be updating on GDPM on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with GDPM.
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Disclosure: we hold no position in GDPM either long or short and we have not been compensated for this article.