I have updated my forecast model for Gulfport Energy (GPOR) and sent to Kim for posting to the website. I have increased my current Fair Value estimate for GPOR to $38.00/share. The current First Call 12-month price target is $38.86. They are currently testing the Tatex discovery well in Thailand and expect to have results when they release 2nd quarter earnings at the end of July (based on my conversation with the company yesterday). I also believe that GPOR is a prime takeover target and would draw a lot of attention if a large-cap made a bid. - Dan
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With recent world events directly affecting the crude oil exports, the trend for this industry remains upward. Equity values of U.S.-based supermajor oil & gas companies are estimated to rise alongside forecasts for improved global economic growth and crude oil prices. S&P believes global GDP expanded 4.1% in 2010 and will grow 3.5% in 2011 and 4.0% in 2012. It is believed that with the continued merger and acquisition activity, notably in North America and other frontier regions, the continuation of drilling in several Countries is likely to increase. An example of this being the growing volumes of Canadian oil imports, as well as greater takeaway capacity from the Rockies.
Equity Markets has reviewed Gulfport Energy Corporation as an independent oil and natural gas exploration and production company with its principal producing properties located along the Louisiana Gulf Coast in the West Cote Blanche Bay (WCBB), Hackberry fields, and in West Texas in the Permian Basin. The Company holds a significant acreage position in the Alberta oil sands in Canada, through its interest in Grizzly Oil Sands ULC (Grizzly), and has interests in entities that operate in Southeast Asia, including the Phu Horm gas field in Thailand. The full research report on Gulfport Energy Corporation (NASDAQ:GPOR - News) is available here: www.EquityMarketsInc.com/researchfile4634.php.
GPOR
Re: GPOR
Gulfport Energy Corporation Reports Increased Acreage Position in Utica Shale, Announces Grizzly Oil Sands ULC Reserve and Resource Assessment and Provides Update on TEW-E Exploratory Well in Thailand
Symbol Price Change
GPOR 31.64 0.00
OKLAHOMA CITY, July 11, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) ("Gulfport") today reported an increased acreage position in the Utica Shale of Eastern Ohio, announced the results of the Grizzly Oil Sands ULC ("Grizzly") reserve and resource assessment and provided an update on the TEW-E exploratory well in Thailand.
Utica Shale Leasing Update
Gulfport continues to actively expand its acreage position in the Utica Shale of Eastern Ohio. To date, Gulfport has acquired leasehold interests in approximately 35,000 gross (17,500 net) acres. Gulfport currently has commitments which could bring its position in the Utica Shale to approximately 110,000 gross (55,000 net) leasehold acres if it acquired all such committed acreage. Gulfport is also currently evaluating additional acquisitions in the Utica Shale that could potentially increase its commitments to approximately 130,000 gross (65,000 net) leasehold acres in the coming months. Gulfport will serve as operator of its acreage in the Utica Shale and currently plans to bring a rig into the play in early 2012 to begin drilling its acreage.
Grizzly Reserves and Resource Assessment
Grizzly, a company in which Gulfport holds an approximate 25% interest, recently announced an independent reserve and resource assessment of its properties conducted by GLJ Petroleum Consultants Ltd. ("GLJ"). Effective March 31, 2011, GLJ's assessment report estimates that Grizzly has 114 million barrels of Proved + Probable (2P) reserves attributable to the Algar Lake Project, 1,972 million barrels of Best Estimate (P50) Contingent Resource and 167 million barrels of Best Estimate (P50) Prospective Resource. To date, approximately 35% of Grizzly's lands had been delineated to a level equal to or greater than one well per section, leaving the remaining 65% relatively unexplored. The March GLJ Report did not evaluate approximately 179,000 net acres of oil sands leases purchased by Grizzly subsequent to March 31, 2011.
The following table summarizes GLJ's determination of Grizzly's reserves and resources effective March 31, 2011. The GLJ reserve and resource assessment report was prepared in accordance with National Instrument 51-101 ("NI 51-101") using the assumptions and methodology outlined in the Canadian Oil and Gas Evaluation Handbook. Effective December 30, 2010, NI 51-101 was amended in a way such that future presentations of reserves and resources would not be directly comparable to previous presentations of reserves and resources. For purposes of comparison, Grizzly's reserves and resources effective October 1, 2010 are presented both before and after the effect of the December 30, 2010 amendment to NI 51-101
complete article here---
http://finance.yahoo.com/news/Gulfport- ... l?x=0&.v=1
Symbol Price Change
GPOR 31.64 0.00
OKLAHOMA CITY, July 11, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) ("Gulfport") today reported an increased acreage position in the Utica Shale of Eastern Ohio, announced the results of the Grizzly Oil Sands ULC ("Grizzly") reserve and resource assessment and provided an update on the TEW-E exploratory well in Thailand.
Utica Shale Leasing Update
Gulfport continues to actively expand its acreage position in the Utica Shale of Eastern Ohio. To date, Gulfport has acquired leasehold interests in approximately 35,000 gross (17,500 net) acres. Gulfport currently has commitments which could bring its position in the Utica Shale to approximately 110,000 gross (55,000 net) leasehold acres if it acquired all such committed acreage. Gulfport is also currently evaluating additional acquisitions in the Utica Shale that could potentially increase its commitments to approximately 130,000 gross (65,000 net) leasehold acres in the coming months. Gulfport will serve as operator of its acreage in the Utica Shale and currently plans to bring a rig into the play in early 2012 to begin drilling its acreage.
Grizzly Reserves and Resource Assessment
Grizzly, a company in which Gulfport holds an approximate 25% interest, recently announced an independent reserve and resource assessment of its properties conducted by GLJ Petroleum Consultants Ltd. ("GLJ"). Effective March 31, 2011, GLJ's assessment report estimates that Grizzly has 114 million barrels of Proved + Probable (2P) reserves attributable to the Algar Lake Project, 1,972 million barrels of Best Estimate (P50) Contingent Resource and 167 million barrels of Best Estimate (P50) Prospective Resource. To date, approximately 35% of Grizzly's lands had been delineated to a level equal to or greater than one well per section, leaving the remaining 65% relatively unexplored. The March GLJ Report did not evaluate approximately 179,000 net acres of oil sands leases purchased by Grizzly subsequent to March 31, 2011.
The following table summarizes GLJ's determination of Grizzly's reserves and resources effective March 31, 2011. The GLJ reserve and resource assessment report was prepared in accordance with National Instrument 51-101 ("NI 51-101") using the assumptions and methodology outlined in the Canadian Oil and Gas Evaluation Handbook. Effective December 30, 2010, NI 51-101 was amended in a way such that future presentations of reserves and resources would not be directly comparable to previous presentations of reserves and resources. For purposes of comparison, Grizzly's reserves and resources effective October 1, 2010 are presented both before and after the effect of the December 30, 2010 amendment to NI 51-101
complete article here---
http://finance.yahoo.com/news/Gulfport- ... l?x=0&.v=1
Re: GPOR
Gulfport Energy Corporation Launches Common Stock Offering
Symbol Price Change
GPOR 31.64 0.00
Press Release Source: Gulfport Energy Corporation On Monday July 11, 2011, 7:40 am EDT
OKLAHOMA CITY, July 11, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today announced that it has commenced an underwritten public offering of 3,000,000 shares of its common stock, subject to market and other conditions. The underwriters will have an option to purchase up to an additional 450,000 shares from Gulfport solely to cover over-allotments. Gulfport intends to use the net proceeds from this offering to repay the current outstanding balance under its secured revolving credit facility, to fund its acquisition of oil and gas assets, including in the Utica Shale in Ohio, and for general corporate purposes, which may include expenditures associated with Gulfport's 2011 drilling programs.
Credit Suisse Securities (USA) LLC is acting as sole book-running manager in the offering. Copies of the preliminary prospectus supplement for the offering may be obtained on the website of the Securities and Exchange Commission, www.sec.gov, or by contacting Credit Suisse Securities (USA) LLC, Prospectus Department, at One Madison Avenue, New York, New York 10010, or by telephone at (800) 221-1037.
The common stock will be issued pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
Symbol Price Change
GPOR 31.64 0.00
Press Release Source: Gulfport Energy Corporation On Monday July 11, 2011, 7:40 am EDT
OKLAHOMA CITY, July 11, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today announced that it has commenced an underwritten public offering of 3,000,000 shares of its common stock, subject to market and other conditions. The underwriters will have an option to purchase up to an additional 450,000 shares from Gulfport solely to cover over-allotments. Gulfport intends to use the net proceeds from this offering to repay the current outstanding balance under its secured revolving credit facility, to fund its acquisition of oil and gas assets, including in the Utica Shale in Ohio, and for general corporate purposes, which may include expenditures associated with Gulfport's 2011 drilling programs.
Credit Suisse Securities (USA) LLC is acting as sole book-running manager in the offering. Copies of the preliminary prospectus supplement for the offering may be obtained on the website of the Securities and Exchange Commission, www.sec.gov, or by contacting Credit Suisse Securities (USA) LLC, Prospectus Department, at One Madison Avenue, New York, New York 10010, or by telephone at (800) 221-1037.
The common stock will be issued pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
Re: GPOR
7:04AM Gulfport Energy prices 3 mln shares of common stock at $28.75 (GPOR) 29.50 : Co announced that it has priced its previously-announced underwritten public offering of 3 mln shares of its common stock at a public offering price of $28.75/share. Gulfport granted the underwriters a 30-day option to purchase up to an additional 450K shares of common stock at the public offering price solely to cover over-allotments. Net proceeds to Gulfport from the sale of the 3 mln shares, after underwriting discounts and estimated expenses, will be ~$81.9 mln. Gulfport intends to use the net proceeds from this offering to repay the current outstanding balance under its secured revolving credit facility, to fund its acquisition of oil and gas assets, including in the Utica Shale in Ohio, and for general corporate purposes, which may include expenditures associated with Gulfport's 2011 drilling programs. The offering is expected to close on July 15, 2011, subject to customary closing conditions.
Re: GPOR
I have adjusted my Net Income and Cash Flow Forecast for GPOR to reflect the higher number of shares. I have adjusted my current Fair Value estimate to $37/share (just $1 lower than where I had it).
Keep in mind that the new capital infusion is going to be used to increase their stake in the Utica Shale which is shaping up to be the next "Big Thing" in liquid prone shale plays. At 100,000 net acres, GPOR would be a major player in the Utica Shale.
Plus, GPOR currently sells 85% of its oil in the Gulf Coast market, getting a $15-$20/bbl premium to WTI.
First Call is estimating $0.56 EPS for Q2. I think GPOR should beat that by 3 to 5 cents.
GPOR is highly leveraged to the price of oil in the Gulf Coast market. Louisiana Sweet is now trading for over $115/bbl.
Keep in mind that the new capital infusion is going to be used to increase their stake in the Utica Shale which is shaping up to be the next "Big Thing" in liquid prone shale plays. At 100,000 net acres, GPOR would be a major player in the Utica Shale.
Plus, GPOR currently sells 85% of its oil in the Gulf Coast market, getting a $15-$20/bbl premium to WTI.
First Call is estimating $0.56 EPS for Q2. I think GPOR should beat that by 3 to 5 cents.
GPOR is highly leveraged to the price of oil in the Gulf Coast market. Louisiana Sweet is now trading for over $115/bbl.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
