Gulfport Energy to Acquire Co., Tx. Oil Plays
Gulfport Energy announced pending acquisitions in the Niobrara Shale of northwestern Colorado and the Permian Basin of West Texas.
Niobrara Shale Acquisition
Gulfport has entered into an agreement with a private seller to acquire a 50% interest in 48,935 gross (24,468 net) acres and certain producing properties located in the Niobrara Shale of Colorado for approximately $7.75 million. Gulfport will be the operator. The acquired properties are focused near thrust bound structures located on the structural uplift between the Piceance and Sandwash basins in Moffat and Rio Blanco counties of Colorado. Gulfport estimates net proved reserves associated with these properties to be approximately 0.9 million barrels of oil. Current production from the acquired properties totals approximately 45 net (114 gross) barrels of oil per day from three producing wells with gross estimated ultimate recoveries per well ranging from 84,000 to 143,000 barrels of oil. These three wells utilized only traditional vertical drilling techniques and were completed without hydraulic fracture treatment. The transaction is subject to customary due diligence and closing conditions and is anticipated to close in mid-June 2010 with an effective date of April 1, 2010.
Jim Palm, Gulfport's Chief Executive Officer, commented, "The pending Niobrara acquisition is an excellent addition to Gulfport's oil focused asset portfolio, which will provide us with a scalable oil resource in a rapidly emerging play. Gulfport will be the operator of 100% of the acquired Niobrara properties and believes it has the opportunity to enhance their value by introducing modern hydraulic fracture treatment technology and by potentially applying horizontal drilling techniques."
Permian Basin Acquisition
In addition, Gulfport has entered into an agreement to acquire a 50% interest in 4,979 gross (2,489 net) undeveloped acres in the Permian Basin for approximately $7.6 million. The addition of this acreage will increase Gulfport's total acreage position in the Permian Basin to 13,101 net acres and represent the addition of 124 gross potential drilling locations on 40-acre units.
Jim Palm, Gulfport's Chief Executive Officer, commented, "The Permian Basin continues to be a core growth area for Gulfport. The pending Permian acquisition adds substantially to our drilling inventory in the oil-rich play and fits well with our existing assets in the basin."
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