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Gulfport Energy Announces Acquisition Of Additional Utica Acreage

OKLAHOMA CITY, Dec. 20, 2012 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) 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.

 
GULFPORT ENERGY CORPORATION
2013 GUIDANCE
   
  Year Ending
  12/31/2013
Forecasted Production  
Oil Equivalent - BOE 7,600,000 - 7,900,000
Average Daily Oil Equivalent - BOEPD 20,822 - 21,370
   
Projected Year-Over-Year Production Increase¹ 195% - 203%
   
Projected Cash Operating Costs per BOE  
Lease Operating Expense -- $/BOE $5.00 - $6.00
Production Taxes -- % of Revenue 8.0% - 9.0%
General and Administrative -- $/BOE $1.50 - $2.50
   
Depreciation, Depletion and Amortization per BOE $33.00 - $35.00
   
Budgeted Capital Expenditures - In Millions:²  
West Cote Blanche Bay $42 - $45
Hackberry $24 - $26
Utica $347 - $351
Thailand $2.0 - $2.5
Total Budgeted E&P Capital Expenditures $415 - $425
  .
   
¹ Based upon 2012 estimated production of 2.575 million BOE and the 2013 forecasted production 
² Excludes amounts for infrastructure, vertical integration projects and acquisitions 

About Gulfport

Gulfport Energy Corporation is an Oklahoma City-based independent oil and natural gas exploration and production company with its principal producing properties located along the Louisiana Gulf Coast. Gulfport has also acquired acreage positions in the Utica Shale of Eastern Ohio and the Niobrara Formation of Western Colorado. In addition, Gulfport holds a sizeable 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 the Permian Basin in West Texas and in Southeast Asia, including the Phu Horm gas field in Thailand.

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