Gulfport Energy Corp. is planning to acquire additional working interests in the Utica Shale in Eastern Ohio.
The Oklahoma City, OK-based independent oil and natural gas exploration and production company has entered into a definitive agreement to purchase approximately 22,000 net acres in the Utica Shale in Eastern Ohio from Windsor Ohio LLC, an affiliate of Wexford Capital LP, for approximately $220 million, increasing Gulfport's leasehold interests in the Utica Shale to approximately 137,000 gross (128,000 net) acres.
The acquisition excludes Windsor Ohio's interest in 14 existing wells and 16 proposed future wells and certain acreage surrounding these wells. The proposed transaction, which is expected to close prior to the end of February 2013, will increase Gulfport's working interest in the acreage to 93.8%. After giving effect to this acquisition, Gulfport currently estimates that its 2013 net production will be approximately 21,370 to 22,192 barrels of oil equivalent per day. 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 committee.
In December 2012, Gulfport (Nasdaq:GPOR) acquired approximately 37,000 net acres in the Utica Shale from Windsor Ohio LLC. Prior to the acquisition, Gulfport Energy Corp. reported test results on its Shugert 1-12H well in Eastern Ohio's Belmont County. The Utica Shale well, tested at an average sustained 18 hour rate of 28.5 million cubic feet per day of natural gas, 300 barrels of condensate per day, and 2,907 barrels of natural gas liquids per day assuming full ethane recovery and a natural gas shrink of 10%, or 7,482 barrels of oil equivalent per day.