Gulfport buys USD 1.85-bln Oklahoma plot
OKLAHOMA CITY, December 15, 2016 – US independent Gulfport Energy has agreed to buy around 344 square kilometres of land in Oklahoma’s natural gas-rich SCOOP region for USD 1.85 billion from Vitruvian II Woodford, the company announced on Wednesday.
The purchase, which covers “substantially contiguous” land in the Woodford and Springer shale formations stretching in three different countries, also includes 48 producing wells and an interest in some 150 non-operated wells. The total estimated reserves at the site are around 31 bcm (1.1 tcf) equivalent, the company said in a statement.
“Combining Vitruvian’s high-quality SCOOP position with our prolific Utica assets will transform our company and solidify Gulfport with core positions in two of North America’s high-return natural gas basins,” Gulfport’s CEO Michael Moore said in the press release.
“In Vitruvian, we believe we have found a prolific stacked pay resource with strong production history, a multi-year, high-return drilling inventory – an opportunity with significant upside from both a resource and operational perspective.”
In order to help finance the purchase, on Wednesday Gulfport also announced that it planned to offer some USD 600 million in senior notes and 29 million shares of common stock.
Photo courtesy of: Gulfport Energy