Gulfport Energy (GPOR) - Update

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Gulfport Energy (GPOR) - Update

Post by dan_s »

OKLAHOMA CITY, June 21, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (GPOR) (“Gulfport” or the “Company”) today provided an update on its recent SCOOP well results. Key highlights include:

The Vinson 2-22X27H produced at an average 30-day peak production rate of 15.7 MMcfe per day.
The Vinson 3R-22X27H produced at an average 30-day peak production rate of 18.7 MMcfe per day.
As previously announced, during the second quarter of 2017 Gulfport turned-to-sales two gross (1.2 net) wells, the Vinson 2-22X27H and Vinson 3R-22X27H, located in the wet gas window in southern Grady County. Following 30 days of production, the Vinson 2-22X27H has cumulatively produced 418.4 MMcf of natural gas and 1,382 barrels of oil and the Vinson 3R-22X27H has cumulatively produced 498.8 MMcf of natural gas and 1,552 barrels of oil. Based upon the composition analysis, the gas being produced from the Vinson pad is 1,118 BTU gas and yielding 35.7 barrels of NGLs per MMcf of natural gas and results in a natural gas shrink of 11%. On a three-stream basis, the Vinson 2-22X27H produced at an average 30-day peak rate of 15.7 MMcfe per day, which is comprised of approximately 79% natural gas, 19% natural gas liquids and 2% oil. The Vinson 3R-22X27H produced at an average 30-day peak rate of 18.7 MMcfe per day, which is comprised of approximately 79% natural gas, 19% natural gas liquids and 2% oil.
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My Take:
> These two wells are exceeding the pre-drill type curve for the area by 30% - 40%. EURs exceed 1,000,000 BOE.
> Three more SCOOP horizontal wells should have 30-day results by the time Gulfport reports Q2 results.
> Gulfport is now running four rigs in SCOOP.
> They expect to complete 17 to 19 gross (14 to 16 net) SCOOP wells to sales this year. < My SWAG is that these numbers will be raised.
> Gulfport holds ~85,000 net reservoir acres in the core of the SCOOP play in Grady, Stephens and Garvin Counties, Oklahoma. ~46,400 Woodford and ~38,600 Springer acres in the over-pressured liquids rich to dry gas windows of the play. Over 80% of the leasehold is already held by production. NRI's average 80%.
> Gulfport's leasehold in SCOOP will hold hundreds of horizontal drilling locations, which now look a lot better.

On March 3, 2017 Credit Suisse rated GPOR as OUTPERFORM with a target price of $33.00. If you download my forecast/valuation model for GPOR to Excel you can find a summary of Credit Suisse's forecasts at the bottom of the spreadsheet. Their 2018 production forecast of 258.350 Boepd (47% natural gas, 26% NGLs and 12% crude oil) compares to my production forecast of 232,000 Boepd.
Dan Steffens
Energy Prospectus Group
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