Gulfport Energy Corp. agreed to acquire another 22,000 net acres in the Utica Shale in Eastern Ohio from Windsor Ohio LLC for about $220 million as the oil-and-natural-gas producer continues to boost its presence in the shale basin.
The Utica Shale, which stretches through Ohio and Pennsylvania, is a relatively new and very promising shale basin that consists of a potentially significant liquids-rich gas source.
Gulfport paid about $300 million in December to take over 37,000 net acres in the Utica Shale from Windsor Ohio LLC, an affiliate of the Greenwich, Conn., hedge fund Wexford Capital LP.
Gulfport said the latest deal, which should close by the end of the month, will increase its working interest in the acreage to 93.8%.
The company also said it plans to fund the transaction with a public offering of 7.75 million common shares.
Gulfport reported in November its third-quarter profit slumped 98% as it logged a $15.5 million income-tax expense related to its oil and natural-gas interests in the Permian Basin.
Copyright (c) 2012 Dow Jones & Company, Inc.
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