GPOR
Posted: Wed Jul 10, 2013 11:26 am
Gulfport Energy (GPOR) is in the Sweet 16 primarily because I believe it has incredible upside in their eastern Ohio Utica Shale acreage. Rex Energy (REXX), which is high on my Watch List, is reporting strong results in the Utica. - Dan
Good news from the Utica Shale:
This morning, Rex released initial 5-day sales rates from company's first three
wells in its Warrior South prospect (4,100 net acres in Guernsey, Belmont, and
Noble counties, OH). Rates ranged from 1,245 to 1,329 Boe/d assuming ethane
rejection and 1,646 to 1,783 Boe/d assuming ethane recovery. While down from
previously reported peak 24-hour test rates of 2,938 to 3,111 Boe/d (full ethane
extraction), volumes are in-line with management's expectations and appear
comparable to nearby competitor wells (adjusted for lateral length). Condensate
yields of 13% to 14% are in-line with our Utica type curve.
All three wells were previously expected to be online June 1 although weather
issues caused the latest midstream delay.
The company is currently drilling the last of the five-well J Anderson pad in Warrior
South, which is expected to be placed into sales in late 2013 (in-line with previous
guidance). These wells will have an average lateral length of 4,250 ft compared to
the 3,535 ft average of the company's first three Warrior South wells. The rig will
subsequently move to the Warrior North prospect for the remainder of 2013.
Good news from the Utica Shale:
This morning, Rex released initial 5-day sales rates from company's first three
wells in its Warrior South prospect (4,100 net acres in Guernsey, Belmont, and
Noble counties, OH). Rates ranged from 1,245 to 1,329 Boe/d assuming ethane
rejection and 1,646 to 1,783 Boe/d assuming ethane recovery. While down from
previously reported peak 24-hour test rates of 2,938 to 3,111 Boe/d (full ethane
extraction), volumes are in-line with management's expectations and appear
comparable to nearby competitor wells (adjusted for lateral length). Condensate
yields of 13% to 14% are in-line with our Utica type curve.
All three wells were previously expected to be online June 1 although weather
issues caused the latest midstream delay.
The company is currently drilling the last of the five-well J Anderson pad in Warrior
South, which is expected to be placed into sales in late 2013 (in-line with previous
guidance). These wells will have an average lateral length of 4,250 ft compared to
the 3,535 ft average of the company's first three Warrior South wells. The rig will
subsequently move to the Warrior North prospect for the remainder of 2013.