Goodrich Petroleum Stock Up On Haynesville Results

NEW YORK (AP) — Shares of Goodrich Petroleum Corp. jumped on Tuesday a day after it released positive Haynesville shale well results which prompted an analyst to upgrade the oil and gas producer.

Goodrich shares rose $2.16, or 7.7 percent, to $30.32 in morning trading.

The company said Monday that it completed its second operated horizontal Haynesville shale well in East Texas, the Lutheran Church 5HR, which tested at an initial production rate of 9 million cubic feet per day.

"The Lutheran Church ... appears to be stronger than its first effort, which tested at 7 MMcf per day," said Thomas Weisel Partners analyst Michael Scialla, who upgraded the stock to "Market Weight" from "Underweight.

Goodrich's strong balance sheet, improving results in East Texas and prolific wells in the Bethany Longstreet field will boost the stock's value above its peer group, Scialla predicted.

Scialla raised his price target to $31 from $18.