Profile: Gulfport Energy Corp (GPOR.O)
6 Dec 2013
Gulfport Energy Corporation (Gulfport) is an independent oil and natural gas exploration and production company with its principal producing properties located along the Louisiana Gulf Coast in the West Cote Blanche Bay, or WCBB, and Hackberry fields, and in West Texas in the Permian Basin. During the year ended December, 31, 2011, it acquired its initial acreage position in the Utica Shale in Eastern Ohio. The Company also holds an acreage position in the Alberta oil sands in Canada through its interest in Grizzly Oil Sands ULC, and has interests in entities that operate in Southeast Asia, including the Phu Horm gas field in Thailand. In 2011, at its WCBB field, it recompleted 68 wells and drilled 21 wells. Of the 21 new wells drilled at WCBB in 2011, 19 were completed as producing wells, one was non-productive and one was waiting on completion. In February 2013, it raised its stake to 93.8%, by acquiring a 16.2% stake in the Utica Shale assets, located in Ohio, from Windsor Ohio LLC.
During 2011, it drilled 86 gross (61 net) wells, which includes 40 gross (17 net) wells drilled by its operators in the Permian Basin and Bakken, and recompleted 100 gross (96 net) wells. Of its 86 new wells drilled, 75 were completed as producing wells, three were non-productive and eight were waiting on completion. During 2011, it acquired approximately 600 additional net acres in the Permian Basin, which brought its total net acreage position in the Permian Basin to approximately 15,300 net acres. During 2011, it acquired leasehold interests in approximately 98,000 gross (49,000 net) acres in the Utica Shale in Eastern Ohio. In 2011, at its East Hackberry field, the Company recompleted 24 wells and drilled 22 wells. Of the 22 new wells drilled at East Hackberry during 2011, 17 were completed as producing wells, two were non-productive and three were waiting on completion. In 2011, 39 gross (17 net) wells were drilled and eight gross (four net) wells were recompleted on its Permian Basin acreage. As of December 31, 2011, 35 of the 39 wells had been completed and four wells were awaiting completion. As of April 1, 2010, it acquired leasehold interests in the Niobrara Formation in northwestern Colorado and held leases for approximately 15,000 net acres as of December 31, 2011. During the year ended December 31, 2011, it drilled three gross (1.5 net) wells on this acreage. As of December 31, 2011, it held approximately 800 net acres in the Williston Basin of western North Dakota and eastern Montana with interests in six wells and an overriding royalty interest in wells drilled prior to its 2009 sale of certain of its Bakken acreage and production from such acreage, wells drilled subsequent to such sale and wells that might be drilled in the future. As of December 31, 2011, it had acquired leasehold interests in approximately 98,000 gross (49,000 net) acres in the Utica Shale in Eastern Ohio. As of February 20, 2012, it had closed on additional acquisitions bringing its leasehold interests to approximately 107,000 gross (53,500 net) acres. The Company also owns a 17.9% ownership interest in Tatex Thailand III, LLC (Tatex III). As of December 31, 2011, it had 19.4 million barrels of oil equivalent of proved reserves.
West Cote Blanche Bay Field
The West Cote Blanche Bay (WCBB) field is located approximately five miles off the coast of Louisiana in a shallow bay with water depths averaging eight to ten feet. The Company owns a 100% working interest (80.108% net revenue interest (NRI)), and are the operator, in depths above the base of the 13900 Sand which is located at 11,320 feet. In addition, it owns a 40.40% non-operated working interest (29.95% NRI) in depths below the base of the 13900 Sand, which is operated by Chevron Corporation. Its leasehold interests at WCBB contain 5,668 gross acres.
In 2011, it recompleted 68 gross and net wells and drilled 21 gross and net wells at WCBB. 19 of the wells were completed as producers, one was non-productive and one was waiting on completion. As of February 20, 2012, it had drilled three wells, were in the process of drilling two additional wells and recompleted six wells during 2012. Of the 21 wells drilled in 2011, 18 were considered deep wells. The 19 productive wells, with total depths ranging from 2,500 to 10,748 feet, have approximately 1,855 feet of aggregate apparent net pay.
East Hackberry Field
The East Hackberry field in Louisiana is located along the western shore and the land surrounding Lake Calcasieu, 15 miles inland from the Gulf of Mexico. It owns a 100% working interest (approximately 79.424% average NRI) in certain producing oil and natural gas properties situated in the East Hackberry field. The Company hold beneficial interests in approximately 3,291 acres, including the Erwin Heirs Block, which is located on land, and the adjacent State Lease 50 Block, which is located primarily in the shallow waters of Lake Calcasieu. The Company also hold 2,868 net acres subject to a two-year exploration agreement it entered into with an active gulf coast operator. The Company is the designated operator under the agreement and will participate in proposed wells with at least a 70% working interest. The Company has licensed approximately 54 square miles of three dimensional (3-D) seismic data covering a portion of the area and are reprocessing the data. As of December 31, 2011, 30 wells had daily production, 93 were shut-in and two had been converted to salt water disposal wells. The remaining 98 wells had been plugged and abandoned.
West Hackberry Field
The West Hackberry field is located on land and is five miles west of Lake Calcasieu in Cameron Parish, Louisiana, approximately 85 miles west of Lafayette and 15 miles inland from the Gulf of Mexico. It owns a 100% working interest (approximately 87.5% NRI) in 592 acres within the West Hackberry field. Its leases at West Hackberry are located within two miles of one of the United States Department of Energy’s Strategic Petroleum Reserves. The estimated cumulative oil and condensate production during 2011, was 286 million barrels of oil equivalent and 140 billion cubic feet of natural gas. As of December 31, 2011, there had been 36 wells drilled on its portion of West Hackberry. As of December 31, 2011, two were producing, 23 are shut-in and one has been converted to a saltwater disposal well. The remaining 10 wells have been plugged and abandoned.
Permian Basin (West Texas)
The Company acquired approximately 4,100 net acres and 32 gross (16 net) producing wells in West Texas (near Midland) in the Permian Basin. Subsequently, the Company acquired approximately 11,200 additional net acres, which brought its total net acreage position in the Permian Basin to approximately 15,300 net acres as of December 31, 2011. The Permian Basin area covers a portion of western Texas and eastern New Mexico and is considered one of producing basins in the United States. The terrain in the Permian Basin is semi-arid mesquite-mixed grassland steppe. Windsor Permian LLC (Windsor), an entity controlled by Wexford, is the operator of this field. As of December 31, 2011, it held interests in 121 gross (57 net) producing well. Wolfberry well reserves are typically approximately 80% from the Wolfcamp section and 20% from the Spraberry section. Ryder Scott Company L.P. (Ryder Scott), an independent petroleum engineering firm, has estimated that at December 31, 2011, proved reserves net to its interest in these assets were approximately 12.9 million barrels of oil equivalent, of which 23% were classified as proved developed producing (PDP). Proved undeveloped (PUD), reserves included in this estimate were from 252 gross well locations on 40-acre units. The proved reserves are located in the Wolfcamp and Spraberry formations, which are generally characterized as long-lived, with predictable production profiles.
In 2011, 39 gross (17 net) wells were drilled in its Permian Basin acreage. The Company has identified 252 gross future development drilling locations. Windsor is the operator of its Permian Basin properties and is controlled by Wexford. An affiliate of Wexford owned approximately 13.3% of its outstanding common stock as of February 20, 2012. During 2011, it also purchased a 25% interest in Muskie Holdings LLC (Muskie), which holds certain rights in a lease covering land in Wisconsin for mining oil and natural gas fracture grade sand. Muskie is controlled by Wexford.
Niobrara Formation (Northwestern Colorado)
As of April 1, 2010, it acquired leasehold interests in the Niobrara Formation in northwestern Colorado, and held leases for 14,993 acres as of December 31, 2011. The Company is the operator on the acreage. It drilled three gross (1.5 net) wells at Niobrara during 2011. It has completed a 60 square mile 3-D seismic survey over its Craig Dome prospect, have received a processed version of the seismic and are selecting future drilling locations.
The Bakken Shale is located in the Williston Basin areas of western North Dakota and eastern Montana. As of December 31, 2011, it held approximately 800 net acres, interests in six wells and an overriding royalty interest in wells drilled prior to its 2009 sale, wells drilled subsequent to such sale and wells that might be drilled in the future. One gross (.01 net) well was drilled on its acreage in 2011.
Utica Shale (Eastern Ohio)
As of December 31, 2011, it had acquired leasehold interests in approximately 98,000 gross (49,000 net) acres in the Utica Shale in Eastern Ohio. As of February 20, 2012, it had closed on additional acquisitions bringing its leasehold interests to approximately 107,000 gross (53,500 net) acres. During 2011, most of the drilling activity in the Utica Shale occurred in Eastern Ohio, where its acreage is located. Based on the initial drilling results, the Utica Shale is prospective for oil and natural gas liquids.
The Company owns working interests and overriding royalty interest in various fields in Louisiana, Texas and Oklahoma. It purchased a 23.5% ownership interest in Tatex Thailand II, LLC (Tatex II). Phu Horm’s initial gross production was approximately 60 million cubic feet per day. For 2011, net gas production was approximately 83 million cubic feet of gas per day and condensate production was 380 barrels per day. Hess Corporation operates the field with a 35% interest. Other interest owners include APICO (35% interest), PTTEP (20% interest) and ExxonMobil (10% interest). Its gross working interest (through Tatex II as a member of APICO) in the Phu Horm field is 0.7%. As of December 31, 2011, Grizzly had approximately 754,000 acres under lease in the Athabasca region located in the Alberta Province near Fort McMurray within a few miles of other existing oil sands projects. As of December 31, 2011, Grizzly had drilled an aggregate of 203 core holes and four water supply test wells, tested nine separate lease blocks and conducted a seismic program.
Gulfport Energy Corp
Suite 100, 14313 North May Avenu
OKLAHOMA CITY OK 73134