Oklahoma City, OK-based Gulfport Energy Corp. (Nasdaq:GPOR) has entered into a definitive agreement with a third-party to acquire approximately 12,600 net undeveloped acres located in northern Monroe County, Ohio in the core of the dry gas window of the Utica Shale for an aggregate purchase price of approximately $87 million, subject to customary post-closing adjustments. Gulfport plans to fund the acquisition with available cash-on-hand.
This acreage is located near or adjacent to Gulfport’s existing acreage position and development plan, and is approximately 50% held by production. The transaction is expected to close in December 2016.
Commenting on the deal, Capital One Securities analyst Brian T. Velie said “the $6.9K/acre price compares favorably to the $19K/acre value that we were modeling for the 141K net dry gas Utica acres already held by GPOR.”
Gulfport Energy is an independent oil and natural gas exploration and production company with its principal producing properties located in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds an acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.