Gulfport Energy Corporation Announces Successful Drilling Results of West Cote Blanche Bay Field and Third Quarter Financial Res
November 19 2004 - 1:03PM
PR Newswire (US)
Gulfport Energy Corporation Announces Successful Drilling Results
of West Cote Blanche Bay Field and Third Quarter Financial Results
OKLAHOMA CITY, Nov. 19 /PRNewswire-FirstCall/ -- Gulfport Energy
Corporation (OTC:GPOR) (BULLETIN BOARD: GPOR) announced successful
results of recent drilling and recompletion activities at the West
Cote Blanche Bay Field in St. Mary Parish, Louisiana. Under the
current drilling program, which commenced July 2004, eight new
wells have been drilled and completed and four existing wells have
been recompleted. The eight wells that have been drilled and
completed in the current drilling program had combined initial
gross production rates of 607 barrels of oil per day and 901 mcf of
gas per day. The logs of the eight wells showed a total of 678 feet
of net pay in thirty-eight productive zones. Gulfport has made
internal estimates of 1,186.042 mboe of proved reserves for the
eight wells. The four existing wells that have been recently
recompleted had combined initial gross production rates of 459
barrels of oil per day and 111 mcf of gas per day. Prior to
beginning the latest drilling program in July 2004, the daily gross
sales for the West Cote Blanche Bay Field was 1,428 barrels of oil
and 237 mcf of gas. The field had daily gross sales of 2,494
barrels of oil and 1,249 mcf of gas at the completion of the
drilling program. Mike Liddell, Gulfport's Chief Executive Officer,
commented, "Gulfport's development drilling programs and production
enhancement operations on our properties continue to produce good
operational results and will increase our production profiles for
both our fourth quarter 2004 and 2005." Gulfport currently owns a
100% working interest and an average net revenue interest of 81.11%
(with net revenue interests ranging from 78.665% to 83.333%) and
operates 5,668 acres from the surface to 11,300' at West Cote
Blanche Bay. The Company also owns working interest up to 40.40%
(29.95% net revenue interest) in the same 5,668 acres below
11,300'. Gulfport's other primary asset is the East Hackberry Field
located in Cameron Parish, Louisiana. The Company is in the process
of completing seismic permitting and gaining final regulatory
approval for a forty-two square mile three dimensional (3-D)
seismic survey with an estimated cost of $4,500,000. Gulfport plans
to start 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. For the three months ended September 30, 2004, Gulfport
generated net income available to common shareholders of $1.2
million ($0.08 per fully diluted common share), operating cash flow
of $3.0 million (defined as cash flow from operating activities
before changes in assets and liabilities) and ebitda of $3.09
million (defined as net income, plus provision for income taxes,
interest expense, other debt related expenses, accretion,
depreciation, depletion and amortization) on revenue of $5.4
million. This increase in net income available to common
shareholders is a result of a 36% increase on oil and gas revenues
from $4.0 million for the same period in 2003 as a result of a 48%
increase in average oil price realized and reductions in both lease
operating expenses and general and administrative expenses. Three
Months Ended September 30, 2004 Net Income $ 1,206,000 Income tax
expense (benefit): Current 682,000 Deferred (682,000) Interest
Expense 98,000 Interest Expense - preferred stock 499,000 Accretion
Expense 75,000 Depreciation, depletion, and amortization 1,207,000
EBITDA $ 3,085,000 Three Months Ended September 30, 2004 Cash
provided by operating activity $ 4,364,000 Adjustments: Changes in
assets and liabilities (1,377,000) Operating Cash Flow $ 2,987,000
EBITDA is a non-GAAP financial measure equal to net income, the
most directly comparable GAAP financial measure, plus provision for
income taxes, interest expense, other debt related expenses,
accretion, depreciation, depletion and amortization. Operating cash
flow is a non-GAAP financial measure equal to cash flow from
operating activities before changes in assets and liabilities. The
Company has presented EBITDA because it uses EBITDA as an integral
part of its internal reporting to measure its performance and to
evaluate the performance of its senior management. EBITDA is
considered an important indicator of the operational strength of
the Company's business. EBITDA eliminates the uneven effect of
considerable amounts of non-cash depletion, depreciation of
tangible assets and amortization of certain intangible assets. A
limitation of this measure, however, is that it does not reflect
the periodic costs of certain capitalized tangible and intangible
assets used in generating revenues in the Company's businesses.
Management evaluates the costs of such tangible and intangible
assets and the impact of related impairments through other
financial measures, such as capital expenditures, investment
spending and return on capital. Therefore, the Company believes
that EBITDA provides useful information to its investors regarding
its performance and overall results of operations. EBITDA and
operating cash flow are not intended to be performance measures
that should be regarded as an alternative to, or more meaningful
than, either net income as an indicator of operating performance or
to cash flows from operating activities as a measure of liquidity.
In addition, EBITDA and operating cash flow are not intended to
represent funds available for dividends, reinvestment or other
discretionary uses, and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance
with GAAP. The EBITDA and operating EBITDA measures presented in
this press release may not be comparable to similarly titled
measures presented by other companies, and may not be identical to
corresponding measures used in the Company's various agreements.
This earnings 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 earnings 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 estimated future
net revenues from oil and gas reserves and the present value
thereof, 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
earnings 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. GULFPORT IS AN INDEPENDENT OIL AND GAS EXPLORATION AND
PRODUCTION COMPANY WITH PROPERTIES LOCATED IN THE LOUISIANA GULF
COAST AREA. DATASOURCE: Gulfport Energy Corporation CONTACT: Joel
McNatt of Gulfport Energy Corporation, +1-405-848-8807, ext. 104
Web site: http://www.gulfportenergy.com/
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