Gulfport Energy (GPOR)

[dan_s]

Analysis of Ohio production from Stifel below.

1Q14 Ohio Utica State Production Data Analysis

Investment Summary. Last Wednesday, the Ohio Department of Natural Resources (ODNR) released production data
for 1Q14, as well as 1Q13 and 2Q13. Key takeaways include: 1) quarterly sequential production growth increasing from
24% in 4Q13 to 53% in 1Q14, 2) SE counties (Belmont, Monroe, Noble) continuing to show the best wells and the largest
portion of the production growth, 3) largest producers remain CHK, GPOR, AR, and REXX. 4) gas weighting continues to creep higher in the play increasing from 83% to 85%, 5) backlog of wells waiting on production starting to decrease from
43% to 39% of wells drilled, 6) rig count back to previous highs of 41.

1Q14 production grew 53% Q/Q. Utica production in Ohio increased to 79.0 bcfe in 1Q14, up 53% Q/Q from 51.7 bcfe of production in 4Q13. 1Q14 gas production was up 56% over 4Q13 total gas volumes, while oil volumes grew 36% Q/Q
during 1Q14. This oil production growth is primarily showing up in Noble County, and included a well from AR that
produced an average of 1,201 bbls/d of oil over seven days (39% oil cut) during 1Q14. While the oil growth is occurring,
the play’s reported gas weighting grew from 83% in 4Q to 85% in 1Q, further reinforcing market sentiment that the Utica
will primarily be a gas play.

SE Ohio continues to be most prolific region of play. Production from the three main SE Ohio counties (Belmont,
Monroe, Noble) now account for 38% of total Ohio Utica production, nearly inline with Carroll County’s 40% share, as
operators increasingly shift southward. Of the top 25 highest-producing wells reported in 1Q (Exhibit 8), 19 of the wells
were in the three SE counties.

CHK remains largest producer, AR & GPOR continue reporting the top wells in the play. CHK remains the Ohio Utica’s
top producer, with 59% of total producing wells, and 47% of total production, and 21% sequential production growth in 1Q.
GPOR (+46% Q/Q) and AR (+24% Q/Q) are growing at a faster rate and continue reporting the best wells in the play.

Upcoming tests may further expand the play’s bounds and inventory. MHR’s Stewart Winland pad in Tyler County,
WV is currently drilling a Utica well that will be the furthest southern well to date to test the Utica, while CHK will drill a
Utica test well in Wetzel County, WV. RRC is currently drilling its first test of the Utica potential in SW PA in Washington
County, PA.

At yesterday's luncheon in Dallas, Gastar (based on logs and pressure tests) said their first well in the Utica is a "potential game changer" and could produce at over 15 MMcfpd. It is in the dry gas area. See Gastar's presentation on our website. They have identified 175 net drilling locations on their leasehold. Each locations could hold 8-10 Bcf of recoverable gas. - Dan