Gulfport Energy Corporation Provides Updates on 2005 Drilling Program and Effects of Hurricane Rita
January 16 2006 - 6:37PM
PR Newswire (US)
OKLAHOMA CITY, Jan. 16 /PRNewswire-FirstCall/ -- Gulfport Energy
Corporation (OTC:GPOR) (BULLETIN BOARD: GPOR) , reports updates on
2005 Drilling Program and Effects of Hurricane Rita. West Cote
Blanche Bay Field Drilling Program Gulfport commenced its West Cote
Blanche Bay ("WCBB") drilling program in March 2005 and to date has
finished drilling 18 wells and recompleting nine wells with another
21 wells scheduled to be drilled along with 18 recompletions over
the next 12 months. The new wells primarily target proved
undeveloped reserve locations for conversion into proved developed
reserves. In addition, as we drill those proved undeveloped
locations, we encounter multiple other objectives which we expect
will also result in the addition of other proved developed
reserves. Of the 18 wells drilled, nine were completed as producing
wells, seven are waiting on completion, one is waiting on side-
tracking and one was unsuccessful. The one unsuccessful well was a
shallow exploratory well that allowed the Company to satisfy
requirements to maintain undeveloped acreage within State Lease 340
WCBB. Facilities Update The Company has previously reported that it
sustained damage to both its Hackberry fields located in Cameron
Parish, Louisiana and its WCBB field located in St. Mary Parish,
Louisiana as a result of Hurricane Rita. While repair and
restoration operations have been underway to return both fields to
production, these efforts have taken longer than anticipated. We
intend to begin placing producing wells back on line following
completion of repairs to a gas sales line and Tank Battery 1A and
Tank Battery 1B. It is currently expected that these repairs will
be completed by the end of February 2006. Prior to Hurricane Rita,
Tank Battery 1A and Tank Battery 1B together handled approximately
70% of total WCBB field production. Tank Battery 3, which handled
approximately 24% of WCBB production prior to the hurricane, is
currently expected to be repaired by mid-April 2006. Tank Battery
2, which handled approximately 6% of WCBB production prior to the
hurricane, is currently expected to be repaired by the end of June
2006. Subsequent to Hurricane Rita, the Company has drilled and set
production casing on six new wells. These wells, together with one
additional well that had been drilled but not completed prior to
the storm and the additional wells to be drilled under the
Company's ongoing drilling program, will be completed once the
Company's facilities have been repaired and its existing producing
wells have been put back on line. The Company is currently
producing approximately 260 net barrel of oil equivalents per day
from its Hackberry fields, none from its WCBB field and
approximately 1,000 net Mcf of gas per day from its non-Louisiana
production. The Company has an insurance program in place which it
believes will adequately cover damage to its platform and
facilities and some of the effect of the interruption to its
business operations. 2006 Guidance The full impact of Hurricane
Rita on our previously announced 2006 guidance will not be known
until production has been restored. Accordingly, the Company will
provide updated guidance for 2006 if needed after production has
been restored from the WCBB field. About Gulfport Gulfport is an
independent oil and gas exploration and production company with its
principal producing properties located along the Louisiana Gulf
Coast. The Company seeks to achieve revenue growth and increase
cash flow by undertaking drilling programs each year. 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. FCMN Contact:
mmoore@gulfportenergy.com DATASOURCE: Gulfport Energy Corporation
CONTACT: Jim Palm of Gulfport Energy Corporation, +1-405-848-8807,
Ext. 179 Web site: http://www.gulfportenergy.com/
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