During Gulfport Energy’s 4^th quarter earnings call, Gulfport CEO Jim Palm reiterated that the Utica/Point Pleasant will be their number one priority in 2013.  Gulfport Energy spudded 14 gross wells in 2012 with 2 in production, 8 wells completed and in their resting period, 2 wells waiting to be completed, and 2 wells currently being developed.  Their acreage position has grown to 137,000 gross acres and as detailed in the call, Gulfport Energy’s focusing their capital in Ohio.

I’d like to reiterate again that the Utica is our primary go-forward focus, and we are allocating our capital accordingly.- Jim Palm, CEO Gulfport Energy, Gulfport Energy Management Discusses Q4 2012 Results – Earnings Cal... Seeking Alpha

Gulfport’s development plan definitely reflects this statement.  While they plan to develop 50 wells this year, Gulfport intends to ramp up their rig count to 4 horizontal rigs in April to give them a head start in case they accelerate their development program later this year.  With four horizontal rigs and two top hole rigs, operating in the Utica, Gulfport plans to focus more on pad development this year with developing two wells per pad at a time.

The focus on pad development will help keep well costs down, which are currently around $9.6 million, and quicken the time to get the wells online.  Gulfport is taking the two well per a pad approach instead of five or more at one time due to the need to get these wells online in a quicker time frame.  It also allows them to come back to develop more wells at a later date and time, maximizing their turnaround time in the future.

During the first half of the year, we will be actively pad drilling, typically drilling 2 wells off the same pad location at once. Many wells will be drilled off of existing pads, which will enable us to capitalize on the existing pipeline, the infrastructure and accelerate spud sales cycle times and revenues, by drilling more wells on locations that are currently in service or soon will be in service.- Jim Palm, CEO Gulfport Energy, Gulfport Energy Management Discusses Q4 2012 Results – Earnings Cal... Seeking Alpha

Thanks to pipeline infrastructure being built out by MarkWest Energy, Gulfport will be able to get their wells online at quicker pace than in 2012 allowing them to take full advantage of the Utica/Point Pleasant’s true potential.  This is helped even more by them developing wells on already existing pads with existing infrastructure.

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