Gulfport Energy Corporation (GPOR) today announced its proposed acquisition of additional working interests in the Utica Shale and provided an operational update.
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 $300 million, increasing Gulfport's leasehold interests in the Utica Shale to approximately 137,000 gross (99,000 net) acres. The transaction excludes 14 existing wells, along with certain acreage surrounding each well. The proposed transaction, which is expected to close prior to year-end, will increase Gulfport's working interest in the acreage to 72.5%. Gulfport will continue to serve as operator of its acreage in the Utica Shale. The transaction was approved by a special committee of Gulfport's Board of Directors. Tudor Pickering Holt & Co acted as advisor to the special
Where do you factor in the liquids / condensate uplift? What effect do you see a more robust ethane market having?
I've been watching the ethane market closely. It's truly in the dumper at ~$.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!
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.
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.
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.
Why would Consol's results in eastern Noble influence the desirability of acreage in western Guernsey? Thank you for your insight.
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.
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!