Gulfport Energy has reported financial and operating results for the second quarter of 2009.
For the second quarter of 2009, Gulfport reported net income of $5.1 million on oil and gas revenues of $20.7 million, or $0.12 per diluted share. EBITDA (as defined below) for the second quarter of 2009 was $13.0 million and cash flow from operating activities before changes in working capital was $12.7 million.
Production and Operational Highlights
Net production was 354,203 barrels of oil, 80,579 thousand cubic feet ("MCF") of natural gas and 700,400 gallons of natural gas liquids ("NGL"), or 384,309 barrels of oil equivalent ("BOE") for the second quarter of 2009. Realized price, which includes transportation, for the quarter was $56.41 per barrel of oil, $2.89 per MCF of natural gas and $0.64 per gallon of NGL, or a total blended price of $53.76 per BOE.
Lease operating expenses for the second quarter of 2009 were $4.1 million, or $10.62 per BOE, and general and administrative expenses were $1.1 million, or $2.97 per BOE.
At West Cote Blanche Bay ("WCBB"), Gulfport spud its first well of 2009 on June 5, 2009 and has since drilled and set pipe on three wells. At present Gulfport is drilling ahead on its fourth well and currently expects to drill a total of eight to ten wells at WCBB during 2009. Gulfport performed a total of 12 recompletions at WCBB in the second quarter.
At Hackberry, Gulfport has moved a rig into the field and spud its first well of 2009 on July 19, 2009. Gulfport plans to drill approximately four wells at Hackberry during 2009. In addition, Gulfport has entered into a two year joint exploration agreement with an active gulf coast operator covering approximately 3,058 net acres adjacent to Gulfport's East Hackberry field. Gulfport is the designated operator under the agreement and will participate in proposed wells with at least a 70% working interest. Gulfport is in the process of licensing approximately 40 square miles of 3-D seismic data covering a portion of the area and plans to reprocess the data.
In the Permian Basin, Gulfport has acquired an additional 2,127 net acres, increasing its total leasehold position in the play to 6,437 net acres. At present, a seismic survey is being conducted on the newly acquired acreage and Gulfport expects a well to be drilled on this acreage by the end of 2009. Additionally, as a product of ongoing science efforts, approximately 20 wells have been identified to have additional up-hole potential and are candidates for recompletions in the future.
In Canada, Gulfport has an approximate 25% interest in Grizzly Oil Sands ULC ("Grizzly"), a Canadian oil sands company. Grizzly holds a significant land position in the Alberta oil sands with 511,765 net acres of oil sands leases, all of which are owned and operated by Grizzly (127,941 acres net to Gulfport). In the first quarter of 2009, Grizzly concluded its 2008-2009 winter drilling season having drilled 15 core holes, including one water supply test. Grizzly has contracted McDaniel & Associates to conduct a resource assessment and economic evaluation of Algar Lake and expects to file its regulatory application for a steam assisted gravity drainage (SAGD) facility with the government by year-end 2009.
In the Bakken, as previously announced, Gulfport sold approximately 12,270 net acres and approximately 190 net BOE per day of production for $13.0 million, with an effective date of April 1, 2009. Gulfport currently holds 6,740 net acres in the Bakken and continues to actively participate in drilling and completion activity in the play.
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