GPOR

[setliff]

..Gulfport Energy Reports Utica Shale Results and Announces First Sales Through MarkWest Harrison County Gas Processing Complex
Press Release: Gulfport Energy Corporation – 14 hours ago....Email0

......OKLAHOMA CITY, Nov. 27, 2012 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (GPOR) today reported test results on its Shugert 1-12H well in the Utica Shale and announced first sales through the MarkWest Energy Partners, L.P. (MWE) Harrison County gas processing complex.

Shugert 1-12 Results

•Gulfport's Shugert 1-12H tested at an average sustained 18 hour rate of 28.5 million cubic feet ("MMCF") per day of natural gas, 300 barrels of condensate per day, and 2,907 barrels of natural gas liquids ("NGLs") per day assuming full ethane recovery and a natural gas shrink of 10%, or 7,482 barrels of oil equivalent ("BOE") per day.
Gulfport's Shugert 1-12H well was recently tested following the conclusion of its 60-day resting period. The well was flow tested over 48 hours, reaching an average sustained 18 hour rate of 28.5 MMCF per day of natural gas and 300 barrels of condensate per day on a 32/64" choke and a flowing casing pressure ("FCP") of 4,208 psi. Subsequent to the test, the 12 hour wellhead shut in casing pressure ("SICP") was 5,250 psi. Based upon composition analysis, the gas being produced is 1204 BTU rich gas. Assuming full ethane recovery, the composition above is expected to produce an additional 102 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 10%. In ethane rejection mode, the composition is expected to yield 41 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 2%. Gulfport currently anticipates it will begin flowing the Shugert 1-12 H into a sales pipeline by the end of January.

MarkWest Harrison County Gas Processing Complex Online

MarkWest Utica EMG. L.L.C. ("MarkWest Utica"), a joint venture between MarkWest Energy Partners, L.P. (MWE) and The Energy and Minerals Group ("EMG"), together with Gulfport have commenced operations of the interim 60 MMCF per day Cadiz refrigeration plant in Harrison County, Ohio. This facility is supported by production from Gulfport's Wagner 1-28H well and Boy Scout 1-33H well.

MarkWest Utica's partnership with Gulfport includes the development of a comprehensive suite of midstream infrastructure in Harrison, Guernsey, and Belmont counties. In addition to the Cadiz refrigeration plant and initial gathering pipelines, MarkWest Utica is constructing a 125 MMcf/d cryogenic processing plant, Cadiz I, which is expected to be completed by the first quarter of 2013. An additional 200 MMcf/d cryogenic plant, Cadiz II, is planned to be operational by the third quarter of 2013 to support Gulfport's rapidly growing liquids-rich production from the Utica Shale. By the beginning of 2014, MarkWest Utica is expected to construct up to 140 miles of gathering pipeline and associated compression for Gulfport's planned drilling program of 50 gross wells in 2013.

MarkWest Utica's planned investment includes a de-ethanization facility at the Cadiz processing complex where purity ethane will be produced and delivered to Gulf Coast markets. The propane and heavier natural gas liquids will then flow via pipeline to the Harrison County fractionator for further separation into valuable purity products. Together these facilities will represent the largest fractionation and marketing complex in the Utica Shale, providing 100,000 barrels per day of C2+ fractionation capacity with an expected completion date in the first quarter of 2014.

Management's Comments

"We are pleased to announce another strong flow test from our position in the Utica Shale of Eastern Ohio," commented Jim Palm, Chief Executive Officer of Gulfport. "Our results to date continue to validate our high expectations for the play and, with the commencement of operations at MarkWest's Cadiz Complex, we look forward to maximizing the play's potential."

"Gulfport's success in the Utica Shale and the commencement of operations at our Cadiz Complex are significant accomplishments in the ongoing Utica Shale development in Eastern Ohio," stated Frank Semple Chairman, President and Chief Executive Officer of MarkWest. "Early results indicate this play is one of the most exciting new areas for natural gas and liquids production in the United States and given our leading position in the neighboring Marcellus Shale we are well positioned to support the producers' future development plans in the Utica".

About Gulfport

Gulfport Energy Corporation is an Oklahoma City-based independent oil and natural gas exploration and production company with its principal producing properties located al

[dan_s]

That is one heck of a well! The Utica Shale looks like a "Company Maker" for GPOR.

This is very good news for MWE, one of the top picks in my new Income Portfolio.

[setliff]

dan, what makes this well better than the first? seems like i recall the condensates in the first were higher.

[setliff]

i stand corrected--output on that well was 144 condensates.

[dan_s]

It appears the results are getting better with each well. This is typical with shale plays as they are continuing to adjust the completion program for each well. I believe GPOR has the best acreage block in the Utica Shale. Results to the north have not been as good. See our profile on RRC that shows a Utica Shale map with over 20 recent well results.

The Utica Shale is HUGE (over 10 million acres) but the liquid prone area is much smaller. GPOR got some of the best acreage in SE Ohio.

BTW this is very good news for the Ohio economy.

[setliff]

GPOR hit very tough resistance at 37+. it retreated from this area 4 times in last two years. it has had this kind of volume only once and that was on its way up to 37 the first time. with the new fundamentals maybe this will be the time to clear this hurdle. it may take some consolidating, however.

support is 34ish.

[dan_s]

Based on comments from MWE, I think GPOR production will more than triple over the next twelve months. They now plan to drill 50 Utica horizontal wells next year. 25 net wells at over 1,000 boepd is big time growth for this puppy.

[setliff]

GPOR closed at an all time high today. it was at 38.09 momentairily in early 2011. will this be enough to get thru this area of resistance? time will tell. it ran into a lot of sellers today.