Gulfport Energy Corporation Announces Record Earnings and Reserves for Year Ended December 31, 2004 and Commencement of Drilling
March 30 2005 - 6:42PM
PR Newswire (US)
Gulfport Energy Corporation Announces Record Earnings and Reserves
for Year Ended December 31, 2004 and Commencement of Drilling
Program OKLAHOMA CITY, March 30 /PRNewswire-FirstCall/ -- Gulfport
Energy Corporation (OTC:GPOR) (BULLETIN BOARD: GPOR) , reported
record financial results for the year ended December 31, 2004. Net
income for the year ended December 31, 2004 was $4.3 million, or
$0.31 per share, on total revenue of $23.2 million. This compares
with a net loss of $219,000, or a loss of $0.02 per share, on total
revenue of $15.9 million for the year ended 2003. The improvement
in earnings for 2004 was primarily the result of an increase in the
average price received for oil of $36.97 compared to $27.66 for the
year ended December 31, 2003. In addition, there was a net increase
in oil and gas production to 631 Thousand Barrels of Oil
Equivalents (MBOE) for the year ended December 31, 2004 compared to
592 MBOE for 2003. Since 2001, Gulfport has engaged the engineering
firm of Netherland, Sewell & Associates, Inc. of Houston, Texas
to render its reserve report. The reserve report for the year ended
December 31, 2004 reflects total net proved reserves of 24,765 MBOE
(thousand barrels of oil equivalent) for Gulfport with 1,974 MBOE
(8%) categorized as proved developed producing reserves, 3,431 MBOE
(14%) classified as proved developed non-producing reserves and
19,360 MBOE (78%) shown as proved undeveloped reserves. The reserve
report assigns a present value of estimated future net revenues
discounted at 10% (PV10) of approximately $361.5 million for total
proved reserves using the SEC required Company year-end pricing of
$43.29 a barrel for oil and $6.04 per MMBTU for natural gas. For
every dollar increase in a barrel of oil, the PV10 value of
Gulfport's reserves increase by approximately $10.1 million. For
example, using $50.00 per barrel oil and $7.00 per MCF gas the
Company's reserve report (assuming the same volumes) would have a
PV10 value of $440.8 million. Gulfport commenced its 2005 drilling
program at the West Cote Blanche Bay Field in St. Mary Parish,
Louisiana during March 2005. Gulfport has budgeted approximately
$25.0 million to drill approximately 20 to 25 wells. The wells to
be drilled will target proved undeveloped reserve locations.
Gulfport will also explore for possible and probable reservoirs by
going deeper and directionally guiding the bit for untapped fault
blocks. In Gulfport's East Hackberry Field located in Cameron
Parish, Louisiana, the Company has completed seismic permitting and
received final regulatory approval for a forty-two square mile,
proprietary three-dimensional (3-D) seismic survey with an
estimated cost of approximately $4,500,000. Gulfport began the
seismic data acquisition during the fourth quarter of 2004 and
hopes to have the final processed seismic data during the third
quarter 2005. Since this portion of the Hackberry dome has never
been included in a 3-D seismic survey, the Company believes the
shoot will reveal undrilled fault blocks that will allow Gulfport
to drill new wells to both shallow and deep targets in the field.
The drilling programs in Hackberry are expected to commence by
September of 2005. Gulfport will fund its 2005 activities with the
net proceeds from the sale of common stock in February 2005, cash
flows from operations and borrowings under its new $30.0 million
credit facility ($18.0 million initial availability) with Bank of
America, which was closed and available as of March 11, 2005. Mike
Liddell, Gulfport's Chief Executive Officer, commented, "Our 2004
earnings are a result of the Company's continuing plans to
capitalize on rising commodity prices by aggressive drilling
programs in our West Cote Blanche Bay Field to both exploit the
Company's proved undeveloped prospect inventory and find and
develop new previously unidentified reserves. We will also continue
our production enhancement operations in our WCBB field and will
begin drilling in the East Hackberry Field later in the year. With
the combination of our 2005 drilling programs and the redemption of
our Series A preferred stock, we expect 2005 to be a very good year
for us." Gulfport is an independent oil and gas exploration and
production company with its principal properties located in the
Louisiana Gulf Coast area. The Company seeks to achieve reserve
growth and increased cash flow from operations through low risk
development activities on its existing properties and other
acquisition opportunities. This news release includes
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements other than statements of historical
facts, included in this news release that address activities,
events or developments that Gulfport Energy Corporation ("Gulfport"
or the "Company"), a Delaware corporation, expects or anticipates
will or may occur in the future, including such things as future
capital expenditures (including the amount and nature thereof),
business strategy and measures to implement strategy, competitive
strength, goals, expansion and growth of Gulfport's business and
operations, plans, references to future success, reference to
intentions as to future matters and other such matters are
forward-looking statements. These statements are based on certain
assumptions and analyses made by Gulfport in light of its
experience and its perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with
Gulfport's expectations and predictions is subject to a number of
risks and uncertainties, general economic, market, or business
conditions; the opportunities (or lack thereof) that may be
presented to and pursued by Gulfport; competitive actions by other
oil and gas companies; changes in laws or regulations; and other
factors, many of which are beyond the control of Gulfport.
Consequently, all of the forward-looking statements made in this
news release are qualified by these cautionary statements and there
can be no assurances that the actual results or developments
anticipated by Gulfport will be realized, or even if realized, that
they will have the expected consequences to or effects on Gulfport,
its business or operations. We have no intention, and disclaim any
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future results or
otherwise. DATASOURCE: Gulfport Energy Corporation CONTACT: Mike
Liddell of Gulfport Energy Corporation, +1-405-848-8807, ext. 106
Web site: http://www.gulfportenergy.com/
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