Gulfport Strikes it Even Bigger with Belmont Well
YOUNGSTOWN, Ohio – Gulfport Energy Corp. has struck gold once again with its second shale gas well on the Shugert property in Belmont County.
The company, based in Oklahoma City, announced Tuesday that its Shugert 1-12H well tested at an average of 28.5 million cubic feet of natural gas, 300 barrels of oil, and 2,907 barrels of natural gas liquids per day. When combined, the peak production rate amounts to 7,482 barrels of oil equivalent per day, by far the best performing well in the Utica shale and all of Ohio.
"We are very pleased to announce another strong flow test from our position in the Utica shale," said Jim Palm, CEO of Gulfport. "Our results to date continue to validate our high expectations for the play." (WATCH today's "3 Minutes With" on our home page)
The announcement sent the price of shares of Gulfport's stock up 16% to $36.85, a 52-week high. Trading volume Tuesday was slightly more than 5 million shares, compared to an 50-day average volume of nearly 1.1 million shares. Gulfport is traded onthe Nasdaq exchange.
In September, Gulfport's Shugert 1-1H well, drilled next to the Shugert 1-12H, tested at 4,913 barrels of oil equivalent per day and was then the No. 1 well in the state. Those results surpassed the company's Wagner well in Harrison County, which tested at a peak rate of 4,650 barrels of oil equivalent per day.
The Shugert 1-12H well was flow tested for 48 hours after a 60-day resting period, the company said. The new well is expected to be flowing gas and oil into a sales pipeline by the end of January.
Meantime, Gulfport announced that its Wagner 1-28H and Boy Scout 1-33H wells are now supplying gas to an interim refrigeration plant in Cadiz, in Harrison County. The new plant is capable of processing 60 million cubic feet of gas per day.
The interim plant is designed to serve these wells as construction continues on Denver-based MarkWest Energy's massive $500 million processing center in Cadiz.
"Gulfport's success in the Utica and the commencement of operations at our Cadiz complex are significant accomplishments in the ongoing Utica shale development in eastern Ohio," said Frank Semple, chairman, president and CEO of MarkWest. "Early results indicate this play is one of the most exciting new areas for natural gas and liquids production in the United States."
The first phase of MarkWest's new processing complex is expected to be finished during the first quarter of 2013. A second cryogenic plant is slated for operation by the third quarter of that year. By early 2014, MarkWest is expected to construct up to 140 miles of gathering pipeline and compression equipment to support Gulfport's plan to drill 50 new wells in 2013.
Copyright 2012 The Business Journal, Youngstown, Ohio.