Gulfport Energy Corporation Provides Operational Update
Press Release: Gulfport Energy Corporation – 1 hour 59 minutes ago
......OKLAHOMA CITY, June 4, 2012 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) ("Gulfport") today provided an operational update.
Utica Shale Processing and Gathering Definitive Agreements
Gulfport today announced the completion of definitive agreements with MarkWest Utica EMG L.L.C. (NYSE:MWE - News) ("MarkWest") to construct and operate gas gathering pipelines and processing facilities associated with Gulfport's development of its Utica Shale acreage in Eastern Ohio. MarkWest currently plans to process the gas at its Harrison gas processing complex and will provide Natural Gas Liquid ("NGL") fractionation and marketing services at its Harrison County fractionator, where NGLs will be marketed by truck, rail, and pipeline.
MarkWest will initially bring on line an interim 40 MMCF per day refrigeration gas processing plant with a third quarter 2012 startup date. This interim facility will be followed by a 125 MMCF permanent cryogenic gas processing facility which is expected to begin operations by the first quarter of 2013. MarkWest anticipates installing an additional 200 MMCF per day of cryogenic capacity in early 2014. It is expected that MarkWest will have approximately 60 miles of pipeline infrastructure with approximately 9,000 horsepower of compression to move Gulfport volumes by the end of 2012. By 2014, MarkWest's Utica build out will include up to 140 miles of high and low pressure gathering lines and 20,000 horsepower of compression. By early 2014, MarkWest's downstream facilities will include up to 325 MMCF per day of cryogenic gas processing capacity located in Harrison County and 100,000 barrels per day of C2+ fractionation.
In addition to its Harrison processing complex, MarkWest is developing a second processing complex in Noble County. MarkWest will initially bring online an interim 45 MMCFPD per day refrigeration natural gas processing plant, with an expected fourth quarter 2012 completion date. The Noble interim facility will be followed by an additional 200 MMCFPD cryogenic processing plant, which is expected to be completed in mid-2013. The Harrison and Noble processing complexes will be connected through a NGL gathering system to the Harrison fractionation complex, which will include 100,000 barrels per day of C2+ fractionation capacity by the first quarter of 2014. The Harrison fractionation complex will be connected through an expansion of MarkWest's Marcellus NGL gathering system to its Houston fractionation complex. The Houston and Harrison facilities will be the largest fractionation complexes in the northeast, and will provide tremendous operating flexibility, and reliability, as well as market access.
Utica Shale Update
In the Utica Shale, Gulfport has reached total depth on its first three horizontal wells in the play. The Wagner 1-28H, Gulfport's first horizontal well in the play encountered an average vertical thickness of 123 feet within the Point Pleasant interval, has been successfully completed with a 28 stage hydraulic fracture treatment and is currently in a 60-day resting period prior to testing and flowing the well. The Boy Scout 1-33H, which is currently undergoing hydraulic fracture treatment, was drilled to a true vertical depth of 7,704 feet with a 7,974 foot horizontal lateral and encountered an average vertical thickness of 126 feet within the Point Pleasant interval. The Groh 1-12H, which is currently waiting on completion, was drilled to a true vertical depth of 7,327 feet with a 5,414 foot horizontal lateral and encountered an average vertical thickness of 119 feet within the Point Pleasant interval. To date, Gulfport's Boy Scout 1-33H and Wagner 1-28H wells represent the longest laterals and longest total measured depths of any wells ever drilled in Ohio. At present, Gulfport has two rigs active in the Utica Shale and is drilling ahead on the fourth and fifth horizontal wells of 2012.
Hackberry Update
Drilling activity at Gulfport's Hackberry fields continue to yield significant results. Since embarking upon its initial exploration program at the fields in 2006, Gulfport has drilled a total of approximately 5,500 feet of apparent net pay and produced approximately 2.18 million barrels of oil equivalent ("BOE") on just 2,000 feet of the 5,500 feet of apparent net pay. Over 3,500 feet of net apparent pay remains to be exploited through either existing producing perforations or uphole intervals reached through relatively inexpensive recompletion procedures.
May 2012 Production Update
During the month of May, Gulfport produced oil and natural gas volumes of 216,609 BOE, or 7,482 barrels of oil equivalent per day ("BOEPD") comprised of 93% oil, 5% natural gas, and 2% NGL. Net daily production by region was 3,679 BOEPD at West Cote Blanche Bay ("WCBB"), 2,607 BOEPD at Hackberry, 1,090 BOEPD in the Permian Basin and an aggregate of 106 BOEPD in the Bakken, Niobrara and other areas.
Reaffirmed 2012 Guidance
Gulfport reaffirms the company's 2012 guidance and continues to estimate 2012 production to be in the range 2.9 million to 3.1 million BOE. As previously announced, second quarter 2012 production is currently estimated to be in the range of 627,900 to 646,100 BOE. 2012 budgeted exploration and production capital expenditures, excluding acquisitions, are estimated to be in the range of $206 million to $221 million. For 2012, Gulfport projects lease operating expense to be in the range of $8.00 to $9.50 per BOE, general and administrative expense to be between $3.50 to $4.25 per BOE, production taxes to be between 10.0% to 10.5% of revenues and depreciation, depletion and amortization expense to be in the range of $32.00 to $34.00 per BOE. These estimates do not give effect to a recently announced proposed contribution of our Permian assets to Diamondback Energy in exchange for equity and cash.
complete article here---
http://finance.yahoo.com/news/gulfport- ... 00266.html
GPOR update
Re: GPOR update
GPOR's May production is more than 500 boepd over what I have in my forecast model for Q2.
Markwest is one of our Top Picks on the MLP Watch List.
GPOR's production tests on the first few Utica Shale wells should be a significant catalyst for the share price. During the last conference call they said logs on the first two Utica wells exceeded expectations.
Markwest is one of our Top Picks on the MLP Watch List.
GPOR's production tests on the first few Utica Shale wells should be a significant catalyst for the share price. During the last conference call they said logs on the first two Utica wells exceeded expectations.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR update
fyi-------stolen from IV bd---
Msg 94169 of 94187 at 6/5/2012 7:25:10 AM by farml1234
what does this do to a well after fracing it , letting it sit for 60 days?
Gulfport has adopted a procedure for a 60 day "rest period" for all their wet gas wells in the Utica. Gulfport says that due to the low water saturation of the shale that letting the water slowly disperse and dissipate prior to flow testing has permanent benefits. They point to Chesapeake's Buelle #8H well as the poster child for this procedure and note that the Buell well improved greatly by being shut in.
Msg 94169 of 94187 at 6/5/2012 7:25:10 AM by farml1234
what does this do to a well after fracing it , letting it sit for 60 days?
Gulfport has adopted a procedure for a 60 day "rest period" for all their wet gas wells in the Utica. Gulfport says that due to the low water saturation of the shale that letting the water slowly disperse and dissipate prior to flow testing has permanent benefits. They point to Chesapeake's Buelle #8H well as the poster child for this procedure and note that the Buell well improved greatly by being shut in.
Re: GPOR update
Gulfport Energy (GPOR) does look like one of the best buys in our Sweet 16. This article helps.
http://seekingalpha.com/article/637731- ... urce=yahoo
On May 25th RBC upgraded it to Outpreform.
In the last quarterly conference call they announced they were "selling" all of their Permian Basin assets to Diamondback Energy for 35% equity in the company. When Diamondback goes public Gulfport will get $63 million cash. They also announced that completion of their Utica Shale wells would be delayed since they plan to leave the frac fluid in the wells for a couple months, a technique that should increase well preformance. The market did not like these announcements and the stock sold off. I like both decisions.
Gulfport said the logs on the first two Utica Shale wells were much better than expected and they plan a two rig continuous drilling program. They will drill 20 Utica Shale wells this year and 30 more in 2013. All of their acreage is in the liquid prone area of the play in Ohio.
The announcement this week that Markwest (one of our favorite MLPs) has fully committed to the build out of the Utica gathering system and processing facilities has drawn more interest in the stock.
http://seekingalpha.com/article/637731- ... urce=yahoo
On May 25th RBC upgraded it to Outpreform.
In the last quarterly conference call they announced they were "selling" all of their Permian Basin assets to Diamondback Energy for 35% equity in the company. When Diamondback goes public Gulfport will get $63 million cash. They also announced that completion of their Utica Shale wells would be delayed since they plan to leave the frac fluid in the wells for a couple months, a technique that should increase well preformance. The market did not like these announcements and the stock sold off. I like both decisions.
Gulfport said the logs on the first two Utica Shale wells were much better than expected and they plan a two rig continuous drilling program. They will drill 20 Utica Shale wells this year and 30 more in 2013. All of their acreage is in the liquid prone area of the play in Ohio.
The announcement this week that Markwest (one of our favorite MLPs) has fully committed to the build out of the Utica gathering system and processing facilities has drawn more interest in the stock.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR update
technically this is a hard call. it appears to be trying to set a bottom, but it went thru a similar maneuver a coupla weeks ago around 20-21. there is no solid support until 14.5ish and that's what makes it a hard call. this maybe another bear trap.
the thing that has been driving the mkt is europe and they appear to be maybe getting their act together.
what say ye, dan?
the thing that has been driving the mkt is europe and they appear to be maybe getting their act together.
what say ye, dan?
Re: GPOR update
My take is that Europes demand for oil won't go much lower from here. In fact, it will go up this fall as it always does. Lots of oil used in Europe for space heating.
Unless Europe falls of a cliff, I just don't see that much impact on the oil markets. Greece is no big deal for oil demand.
Read the OPEC monthly report available on our home page for more on this.
Unless Europe falls of a cliff, I just don't see that much impact on the oil markets. Greece is no big deal for oil demand.
Read the OPEC monthly report available on our home page for more on this.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group