NEW YORK (TheStreet) -- Shares of Goodrich Petroleum (GDP) were gaining 13.3% to $1.79 Monday after the oil company announced that it commenced the completion of two of six uncompleted wells in the Tuscaloosa Marine Shale in the Gulf of Mexico.
Goodrich Petroleum said the two wells will be completed with flow back and initial production expected within one to two weeks. The company plans to complete the other four uncompleted wells in the Tuscaloosa Marine Shale from mid-July through earlier September.
All six wells will be completed before the fall borrowing based redetermination scheduled for October, the company said.
Goodrich Petroleum also re-affirmed its second quarter capital expenditure guidance of $10 million to $15 million.
About 3 million shares of Goodrich Petroleum were traded by 12:16 p.m. Monday, compared to the company's average trading volume of about 3 million shares a day.
TheStreet Ratings team rates GOODRICH PETROLEUM CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOODRICH PETROLEUM CORP (GDP) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."