Gulfport Energy Corporation Reports Third Quarter 2010 Results

OKLAHOMA CITY, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) today reported financial and operating results for the third quarter of 2010.

For the third quarter of 2010, Gulfport reported net income of $12.7 million on oil and gas revenues of $33.3 million, or $0.28 per diluted share. EBITDA (as defined below) for the third quarter of 2010 was $24.0 million and cash flow from operating activities before changes in working capital (as defined below) was $23.4 million.

Financial Highlights

• Produced oil and gas sales volumes of 527,010 barrels of oil equivalent ("BOE"), or 5,728 barrels of oil equivalent per day ("BOEPD"), in the third quarter of 2010, a 13% sequential increase over the second quarter of 2010 and a 27% year-over-year increase from the third quarter of 2009
• Recorded net income of $12.7 million in the third quarter of 2010, a 22% sequential increase over the second quarter of 2010 and a 90% year-over-year increase over the third quarter of 2009
• Generated $24.0 million of EBITDA in the third quarter of 2010, a 20% sequential increase from the second quarter of 2010 and 62% year-over-year increase from the third quarter of 2009
• Reported lease operating expense of $7.71 per BOE in the third quarter of 2010, a 9% sequential improvement as compared to the second quarter of 2010

Production

For the third quarter of 2010, net production was 468,265 barrels of oil, 242,737 thousand cubic feet ("MCF") of natural gas and 768,112 gallons of natural gas liquids ("NGL"), or 527,010 BOE. Net production for the third quarter of 2010 by region was 452,258 BOE in Southern Louisiana, 64,807 BOE in the Permian Basin and 9,945 BOE in the Bakken and Niobrara.

Realized price for the third quarter of 2010, which includes transportation costs, was $67.39 per barrel of oil, $4.37 per MCF of natural gas and $0.85 per gallon of NGL, for a total equivalent price of $63.14 per BOE. Realized price for oil in the third quarter of 2010 reflects the impact of fixed price contracts for 2,300 barrels of oil per day at a weighted average price of $58.24 before transportation costs and differentials. Gulfport currently has fixed price contracts in place for 2,300 barrels of oil per day at $58.24 before transportation costs and differentials for the remainder of 2010.

Gulfport Energy Corporation
Production Schedule
(Unaudited)
Production Volumes:	3Q 2010	3Q 2009	YTD 2010	YTD 2009
Oil (MBbls)	468.3	373.4	1,286.0	1,127.7
Gas (MMcf)	242.7	160.9	623.9	320.8
NGL (MGal)	768.1	651.2	2,053.1	2,074.7
Oil Equivalents (MBOE)	527.0	415.7	1,438.9	1,230.6
Average Realized Price:
Oil (per Bbl)	$67.39	$56.62	$65.98	$51.56
Gas (per Mcf)	$4.37	$3.09	$4.51	$3.47
NGL (per Gal)	$0.85	$0.82	$0.97	$0.69
Oil Equivalents (BOE)	$63.14	$53.34	$62.31	$49.32

Operational Highlights

• Generated a 100% drilling success rate year-to-date in Southern Louisiana
• Operator in the Permian is securing service crew and material availability and vertically integrating key operations
• Began permitting 60 square mile 3-D seismic survey in the Niobrara
• Grizzly finalized its 2010/2011 winter drilling program which includes a total of 89 primary core hole locations and 35 contingent core hole locations
• Grizzly received the Supplemental Information Request ("SIR") pertaining to its Algar Lake Project from Alberta regulators according to schedule

Operations

At WCBB, Gulfport drilled and completed six productive wells and performed 15 recompletions during the third quarter of 2010. Gulfport is currently drilling ahead at 8,434 feet on the 21 ^st well of its 2010 drilling program at WCBB and presently expects to drill a total of 24 wells at WCBB during 2010. 

At Hackberry, Gulfport drilled one well and performed three recompletions during the third quarter of 2010. Due to continued drilling success at Hackberry, Gulfport is expanding its 2010 drilling program at the field to a total of eight wells. A rig is currently in the field and is drilling ahead at 2,153 feet on the seventh well of the recently expanded eight well program at Hackberry.