GPOR update

[setliff]

12:54AM Gulfport Energy provides Utica Shale results and updates field status following Hurricane Isaac, no apparent damage; production restored Sep 2 (GPOR) 25.72 : Co provides production results on its Boy Scout 1-33H well in the Utica Shale and reported on the status of its West Cote Blanche Bay field following Hurricane Isaac. In the Utica Shale, co's Boy Scout 1-33H well was recently brought online from its resting period. The well tested at a gross peak rate of 1,560 barrels of condensate per day and 7.1 MMCF per day of natural gas. Based upon composition analysis, the gas being produced is 1,310 BTU rich gas. Assuming full ethane recovery, the composition above is expected to produce an additional 142 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 25%. In ethane rejection mode, the composition is expected to yield 84 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 17%. Gulfport currently anticipates it will begin flowing the Boy Scout 1-33H into a sales pipeline by mid-to-late September. Additionally, co reports WCBB facilities sustained no apparent damage from Hurricane Isaac and Company operations personnel began restoring production to the field Sunday, September 2, 2012.

[dan_s]

If Gulfport averages anything close to this on all 20 of the Utica Shale wells they plan to complete in the next 6-9 month this stock is going to double. Gulfport appears to hold some of the best acreage in the Utica Shale.

[setliff]

[setliff]

GPOR is really showing strong resistance ~28 for some reason. ahh! i see it now. weekly chart shows peak trading volume at that level going back to mar 2011.

it will need a lot more buying vol to overcome that, imo.

[setliff]

excerpt from

http://seekingalpha.com/article/849711- ... urce=yahoo

Yesterday saw Gulfport Energy (GPOR) rise as they announced the night before results from another Utica well. A small boutique firm initiated coverage on the shares and we saw strong volume of 2.3 million during yesterday's session. Shares fell off of their highs set early in trading yesterday, but shares were still able to close at $27.44/share after rising $1.73 (6.71%). We think that the shares are still undervalued, and for anyone thinking otherwise we would ask that they take a look at the transcript from the latest conference call. As we have said for some time now, this is a $50/share stock trading at a healthy discount to what we believe is not only the future value but also its current fair value. We think shares will continue to be one of the best performers in the Utica over the next few months and will continue to add exposure to our portfolios.

[adamlloyd]

GPOR states that the Utica 1-33H well flows 1,560bpd of Condensate and 1,008 bpd of NGLs. I am showing my ignorance here, but what exactly are "Condensates" (as opposed to NGLs), and what price do they fetch (relative to NGLs)?
Thanks,
Adam

[adamlloyd]

The August 7 company presentation has lots of information on the Grizzly oil sands operation, which is due to start production in the second quarter of next year. But what is noticeably lacking is anything on the economics of the whole project, or indeed anything specific on where the bitumen is going to go. This bothers me. Is the company going to get a decent return on their sizeable investment, or is this going to be a cash sink for years to come?
Adam

[dan_s]

"Condensate" is crude oil that drops out of the natural gas stream at surface temps.

Grizzly Oil Sands projects: All Oil Sands projects are very capital intensive up front. Once they come on-line they ramp up to the capacity of the facilies (at least that is the plan) and hold at that rate for a long time. At today's oil prices they should generate very strong cash flows. Grizzly's first projects should provide more than enough cash flow to cover future growth. This is significant upside for GPOR.