Gulfport shells out $407 million for additional Utica assets

Gulfport Energy has entered into agreements to acquire additional acreage in the Utica Shale, associated assets and incremental firm transportation commitments from American Energy  Utica LLC (AEU).

Acquisition Highlights

• Contiguous bolt-on acreage acquisitions totalling ~35,325 net acres in Monroe, Belmont and Jefferson Counties, Ohio
• 11 mile gas gathering system currently in-place and operational in Monroe County to support near-term development
• Incremental 287,000 MMBtu per day of firm transportation commitments provide access to favorable pricing points outside of the Appalachian Basin

Belmont/Jefferson acquisition

Gulfport purchased ~6,198 gross (6,198 net) undeveloped acres in Belmont and Jefferson Counties  from AEU for a purchase price of $68.2 million. This acreage is located near theacreage acquired by Gulfport from Paloma Partners for $301 million.

Monroe acquisition

Also , Gulfport entered in to a definitive purchase agreement with AEU to acquire ~38,965 gross (27,228 net) acres located in Monroe County,  14.6 MMcfpd of net production estimated for April 2015, 18 gross (11.3 net) drilled but uncompleted wells, one fully constructed four well pad location and an 11 mile gas gathering system for a total purchase price of $319.0 million, of which approximately $52.0 million has been allocated to the existing production and the drilled but uncompleted wells and $20.0 million has been allocated to the gathering system.

Gulfport has also agreed to acquire an additional 4,950 gross (1,900 net) acres in Monroe County for an additional $19.4 million from AEU.

Development plan

Gulfport currently intends to add one rig to operate on this acreage beginning in the first quarter of 2016. 

On completion, Gulfport will hold ~262,000 gross (243,000 net) acres in Utica Shale play. Gulfport will become the operator and anticipates that this acreage will add approximately 200 net locations to its existing drilling inventory, based on 160-acre spacing.