Odey Asset Management, a London-based hedge fund managed by Crispin Odey, acquired 2,222,485 shares or a 5.1% stake in Goodrich Petroleum Corporation (NYSE:GDP) based on its 13G filing with the Securities and Exchange Commission (SEC).

Crispin Odey

Goodrich Petroleum Corporation (NYSE:GDP) is an independent oil and natural gas exploration and production company. It is engaged in acquiring, drilling, developing, and producing natural gas and crude oil.

Odey Asset Management is one of the largest institutional investors of Goodrich Petroleum Corporation (NYSE:GDP).

Goodrich accelerates drilling

The shares of the company are trading around $17.47 per share in the early morning trading on Thursday. In October last year, Goodrich Petroleum Corporation (NYSE:GDP) raised funds through a public offering of 6,000,000 shares for $25.25 each. The company used the $165.9 million net proceeds from the offering to accelerate its drilling operations in the Tuscaloosa Marine Shale (TMS).

Plugged well

In December, the stock price of the company plummeted 6.5% after announcing that the Huff 18-7H-1 (97% WI) well in Amite County, Mississippi was successfully fracture stimulated with 17 stages and had commenced flowback at expected fluid rates, but the well was plugged up with frac-related debris.

The stock managed to recover its value after Neil Dingmann of SunTrust Robinson Humphrey issued a note to investors that “it is not uncommon for a well to become plugged during the flowback stage.” He projected that the initial production rate will be more than 700 barrels per day, possibly challenging the 1,000 barrels per day production rate of the Smith 5-29H-1.

Odey predicts 2014 a year for hedge funds

In his letter to the investors of his fund, Odey predicted that 2014 is a year for hedge funds. He wrote, “If 2013 was a dream of a year, will 2014 be a nightmare? Given how enthusiastic the forecasters are it has the chance to be. A year more for the hedge funds than the long equity funds, I suspect.”

Last year Odey Asset Management gained from its investment in D.R. Horton, Inc. (NYSE:DHI), Sky Deutschland AG (FRA:SKYD) (ETR:SKYD), The Ryland Group, Inc. (NYSE:RYL), and Circle Holdings. The fund also benefited from its short positions in Apr Energy PLC (LON:APR) and Kazakhmys plc (LON:KAZ) (HKG:0847).