Wednesday, November 13, 2013

Gulfport Energy Is Eyeing Uptake In Production As Market Gears Up For Third Quarter Earnings

By Sarfaraz A. Khan and Gohar Yousuf

Gulfport Energy’s (NASDAQ:GPOR) growing acreage, production numbers, and future outlook

The independent oil and gas exploration and production firm Gulfport Energy (GPOR), which is also one of Jim Cramer’s picks, has been moving forward with its plans to increase its acreage at Ohio’s Utica Shale play. The company has recently released a production update for the third quarter. Its quarterly results are due tomorrow. 

Growing Acreage 

For the three months ending September 2013, the company added 9,000 gross acres to its lease holding. Currently, Gulfport has amassed impressive acreage of around 154,000 gross acres, or 144,500 net acres, at Utica Shale. Here, the company has leading permits in Columbiana, Harrison and Noble counties.

Although Gulfport Energy has operations in Southern Louisiana and Utica Shale, while the company has also been doing exploration activity in the Canadian oil sands and Northern Thailand, but it has been more focused on the Utica than anywhere else. Compared to Marcellus, Utica is relatively risky as it is still in the early stages of drilling and the area itself is less developed than Marcellus. However, it offers enormous opportunities for growth. 

Both Utica and Marcellus lie at the Appalachian Basin. According to the U.S. Geological Survey, Utica Shale is home to around 38 trillion cubic feet of 
undiscovered technically recoverable natural gas; that is certainly not as much as Marcellus’ 84 trillion cubic feet of reserves, but it still represents a lot of oil, gas and natural gas liquids. 

At Ohio, Gulfport is the second largest Utica driller with a total of 11 producing wells out of 86 permits. On the other hand, the …. Read full article at GuruFocus