For the first quarter of 2007, Gulfport reported net income of $7.3 million on revenues of $20.4 million, or $0.21 per diluted share. Net income increased 158% compared to the first quarter of 2006.
EBITDA for the first quarter of 2007 was $13.8 million, an increase of 225% from the first quarter of 2006 due to increased production levels. Cash flow from operating activities before changes in working capital was $13.3 million.
Production and Operational Highlights
Net production was 341,526 barrels of oil and 157,903 million cubic feet ("MCF") of natural gas or 367,844 barrels of oil equivalent ("BOE") for the first quarter of 2007. Realized price, which includes transportation, for the quarter was $56.38 per barrel of oil, $7.02 per MCF of natural gas or total equivalent of $55.36 per BOE.
Year-to-date, Gulfport drilled 11 wells in southern Louisiana. The company drilled seven wells at West Cote Blanche Bay ("WCBB"), four of the wells are producing, one well is awaiting completion and two wells are non-productive. The company drilled four wells at the Hackberry Field, one well is producing, two wells have been completed and are awaiting gas pipeline interconnects and one is awaiting completion. The company also performed 18 recompletions, all at the West Cote field.
Initial Production and Test Rates at Hackberry Field
Gross Test Rates ----------------- Flow Shut-in Tubing Tubing Well No. Status BOPD MCF/D Choke Pressure Pressure ---------- ------- ---- ----- ----- -------- -------- 2006 No. 1 Testing - - - - - 2007 No. 1 Tested 140 3,126 11/64 4,625 4,750 2007 No. 2 Producing 384 30 - 186 450 2007 No. 3 Drilled - - - - - 2007 No. 4 Tested 196 2,020 15/64 2,173 3,900
Updated 2007 Capital Budget Due to the successful drilling results, Gulfport intends to expand its 2007 drilling program in the Hackberry field. In addition to the four wells drilled this year at the Hackberry field, Gulfport now plans on drilling approximately 8 to 10 more wells in Hackberry during 2007. Year-to-date, we have spent approximately $25 million on drilling and production facilities at Hackberry. We anticipate spending an additional $35 to $45 million at Hackberry during the remainder of 2007 resulting in $60 to $70 million of estimated total capital expenditures at Hackberry during 2007. As a result of the additional Hackberry drilling, Gulfport is increasing its total estimated 2007 capital expenditure budget to $120 to $130 million.
Gulfport Energy Corp. 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, through a joint venture, recently acquired an acreage position in the Alberta oil sands in Canada and drilled core samples this winter. In addition, Gulfport also has an indirect interest in the producing Phu Horm gas field in Thailand.
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