OKLAHOMA CITY, Jan. 16 /PRNewswire-FirstCall/ -- Gulfport Energy
Corporation (OTC 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.
SOURCE Gulfport Energy Corporation
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Related links:
http://www.gulfportenergy.com
CONTACT:
Jim Palm of Gulfport Energy Corporation,
+1-405-848-8807, Ext. 179
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