Gulfport has entered into a definitive agreement to purchase approximately 30,000 net acres in the Utica

Gulfport Energy Corporation (GPOR) today announced its proposed acquisition of additional working interests in the Utica Shale and provided an operational update.

Utica Shale

Gulfport has entered into a definitive agreement to purchase approximately 30,000 net acres in the Utica Shale in Eastern Ohio from Windsor Ohio LLC, an affiliate of Wexford Capital LP, for approximately $300 million, increasing Gulfport's leasehold interests in the Utica Shale to approximately 137,000 gross (99,000 net) acres. The transaction excludes 14 existing wells, along with certain acreage surrounding each well. The proposed transaction, which is expected to close prior to year-end, will increase Gulfport's working interest in the acreage to 72.5%. Gulfport will continue to serve as operator of its acreage in the Utica Shale. The transaction was approved by a special committee of Gulfport's Board of Directors. Tudor Pickering Holt & Co acted as advisor to the special

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Permalink Reply by Armstrong Land on January 12, 2013 at 4:02am

Joe,

Where do you factor in the liquids / condensate uplift?  What effect do you see a more robust ethane market having?

Permalink Reply by Bluflame on January 12, 2013 at 5:25am

A. L.,

  I've been watching the ethane market closely. It's truly in the dumper at ~$.22/gallon. With all the midstream coming on board meaning plugged Utica wells coming on stream soon, it doesn't bode well for ethane prices to increase any time soon. Not to mention the ethane pipelines to the crackers won't be on line until 2014 and you can't transport it by truck or railcar.

   Other than that, everything's peachy-keen with ethane!

IMHO

BluFlame

Permalink Reply by jonathan M. on December 18, 2012 at 5:30am
I would agree seems a bit misleading. Nothing in this business seems to be straightforward!
Permalink Reply by Bluflame on December 18, 2012 at 5:43am

Joe & Jonathan,

      Good discussion. Thanks for your respective inputs. I guess at this stage we can only hope that GPOR keeps drilling great wells and leave the back room ownership manipulations to the "experts". 

      Secretive hedge funds give me the creeps. 

BluFlame

Permalink Reply by Dan on December 18, 2012 at 8:33am
Permalink Reply by RO on January 26, 2013 at 7:59am

With Gulfport acquiring all this acreage, for those of us who haven't leased yet in the Guernsey area, do you think it is best to lease with them? Are they our best chance of getting drilled?  I think other options are Eclipse and Antero.

Thanks!

Permalink Reply by Roger Pyle on January 26, 2013 at 8:21am

Has anyone heard anything further on the EV Energy sales?  They came out around Christmas saying there had been a delay (originally they had said they wanted to close a sale by year end 2012), then nothing since.

Permalink Reply by arminius on January 26, 2013 at 7:33pm

Joe,

 

Why would Consol's results in eastern Noble influence the desirability of acreage in western Guernsey?  Thank you for your insight.

Permalink Reply by RO on January 27, 2013 at 3:41pm

We are in eastern Guernsey and being that Gulfport is the one that has drilled the two best producing wells in the area it makes me think that they may be the company to go with or that they may be our best chance of getting drilled???  If so, I don't have a contact for them but I can always call their corporate.  Or we can hold off for a bit and see where it goes.

Permalink Reply by RO on January 28, 2013 at 12:27am
Millwood township. About 100 acres.
Permalink Reply by Bluflame on January 28, 2013 at 3:14am

RO,

   FYI.  I haven't checked Guernsey County, but the Belmont County Recorders' Office has recorded quite a few new Gulfport leases over the past few months. If you care to, you can check this out on line (not sure about Guernsey County). No lease terms are disclosed  by the Recorders' Office for these transactions.

  GPOR has publicly stated in their monthly updates that they are seeking new leased property within their operating area. As you know, that includes at least the eastern portion of Guernsey County.

  Hope this helps!

BluFlame

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