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Gulfport Energy Corporation
today announced its agreement to acquire additional working
interests in the Utica Shale.
Utica Shale
Gulfport previously announced that on December 17, 2012 it entered into a
definitive agreement to purchase approximately 30,000 net acres in the Utica
Shale in Eastern Ohio for approximately $302 million. The parties have now
amended that agreement to provide for Gulfport's acquisition of approximately
7,000 additional net acres for approximately $70 million, resulting in a total
acquisition price of approximately $372 million. The transaction, which will
increase Gulfport's leasehold interests in the Utica Shale to approximately
137,000 gross (106,000 net) acres, excludes 14 existing wells, along with
certain acreage surrounding each well. The proposed transaction is expected to
close prior to year-end. 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, which engaged independent
financial advisors and counsel to assist with its review. Gulfport intends to
fund this acquisition with a portion of the net proceeds from its common stock
offering that priced on December 18, 2012. That offering is expected to close
on December 24, 2012, subject to customary closing conditions.
2013 Guidance
After giving effect to the Utica acquisition described above, Gulfport
currently expects 2013 production to be in the range 7.60 million to 7.90
million BOE. Capital expenditures for exploration and production activities
during 2013 are estimated to be in the range of $415 million to $425 million,
excluding potential capital expenditures relating to Grizzly.
For 2013, Gulfport projects lease operating expense to be in the range of
$5.00 to $6.00 per BOE, general and administrative expense to be between $1.50
and $2.50 per BOE, production taxes to be between 8% and 9% of revenues, and
depreciation, depletion and amortization expense to be in the range of $33.00
to $35.00 per BOE.
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