Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Johnson Rice Energy Conference 2009
21 slides from Gulfport Energy's conference presentation, Oct 8, 2009
Slide 1: Gulfport Energy Corporation
Exhibit 99.1 Gulfport Energy Corporation Johnson Rice Energy Conference th October 8 , 2009
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation 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 st
Slide 3: Gulfport Today
Gulfport Today Company Overview Map of Operations Ticker: Canadian Oil Sands Acreage: 127,941 Net Acres Bakken Shale Acreage: 900 Net Acres Market Cap¹: $342 MM Thailand 42.67 MM Shares x $8.01 Per Share Acreage: 4,000,000 Gross Acres Reserves: 3.5 Net BcfGas Permian Basin 19,000 Net BblsOil Acreage
Slide 4: Key Investment Considerations
Key Investment Considerations Gulfport has a diverse portfolio of oil-weighted assets Active in Southern Louisiana and the Permian, two of America’s most prolific oil producing basins OIL Long-term leases in the Canadian Oil Sands provide long-term optionallity in the largest oil play in the world o
Slide 5: Balance Sheet
Balance Sheet Declining Levels of Debt $120 ST & LT Debt $100 $80 $60 $95.9 $40 $70.7 $65.0 $64.8 $55.6 $20 $0 09/30/08 12/31/08 3/31/09 6/30/2009 9/30/09E 42% reduction in debt since 9/30/08 4
Slide 6: Cost Environment
Cost Environment The combined effect of increased commodity pricing and reduced drilling and completion costs has allowed Gulfport to resume drilling in earnest again SL340 #989 SL340 #981 (June 2009) (October 2008) % Decrease Mobilization/Demobilization $ 10,000 per job $ 35,000 per job -71% Drilli
Slide 7: Valuing Gulfport
Valuing Gulfport Gulfport is highly leveraged to oil and is presently trading Oil sands provide at a discount to its current PV-10 value which assigns no significant value to its position in the Canadian Oil Sands upside and are completely discounted Due to price from At year-end 2007 revisions at y
Slide 8: Gulfport in the Scope of Canada's Oil Sands
Gulfport in the Scope of Canada’s Oil Sands • Gulfport holds an interest in approximately 127,941 net acres¹ of oil sands leases • The Canadian oil sands of Alberta are the world’s largest oil play outside of Saudi Arabia with approximately 173 billion² barrels of oil proven to be recoverable using
Slide 9: Unlocking Value in the Canadian Oil Sands
Unlocking Value in the Canadian Oil Sands • On August 31, 2009 Athabasca Oil Sands Crop (AOSC) and PetroChina announced a deal whereby PetroChina will acquire 60% of AOSC’s Dover and MacKay River oil sands projects 1 AOSC - PetroChina Deal 180,000 Net Acres @ $9,650 Per Acre = $1.74 Billion NO PRODU
Slide 10: Unlocking Value in the Canadian Oil Sands (cont.)
Unlocking Value in the Canadian Oil Sands (cont.) 1,2,3 • ~50,000 acres net to Gulfport’s interest¹ are located in the direct vicinity of the AOSC – PetroChina acreage • This portion of acreage has well control from: ~278 wells on or within 1 section of the acreage ~578 wells on or within 3 sections
Slide 11: Canadian Oil Sands Historical M&A
Canadian Oil Sands Historical M&A Announcement Transaction Working Interest Transaction Acquiror Seller Target Date Value Lease Size Value US$mm Acres $/acre Pettrochina Athabasca Oil Sands 60% of Company 8/31/2009 $1,737 180,000 $9,650 Nexen OPTI Canada 15% Long Lake 12/17/2008 $735 38,880 $18,904
Slide 12: Developing the Canadian Oil Sands
Developing the Canadian Oil Sands Algar Lake Project Algar Lake is expected to be the site of Grizzly’s¹ first oil sands production facility Grizzly¹ plans to develop Algar Lake employing a method of in-situ extraction called Steam Assisted Gravity Drainage (SAGD) to produce the leasehold Expected c
Slide 13: Canadian Oil Sands Economics
Canadian Oil Sands Economics Generic SAGD Facility Economics¹ Pre-Tax Net Present Value Sensitivities to the Gross 100% Working Interest for First Phase SAGD Project Assumptions $350 $286 $300 WTI / NYMEX Gas Ratio 15-to-1 AECO Gas as % of Henry Hub 90% $250 $209 Wellhead Bitumen Price as % of WTI 7
Slide 14: Permian Basin
Permian Basin Gross Estimated Ultimate Recovery 2009 Activity Update GPOR: 110-145 MBOE Peers 3 • Currently hold 6,724 net acres CXO: 140-150 MBOE – Acquired an 2,127 net acres during 2Q’09 PXD: 120-150 MBOE DVN: 150 MBOE – Recently added an additional 287 net acres • Currently shooting seismic on m
Slide 15: Permian Basin
Permian Basin Generic Wolfberry Well Economics Reserves Net Reserves¹ 90,000 - 110,000 BOE Oil 64% Gas & NGLs 36% Drill & Complete Cost $ 1.2 MM WTI / NYMEX Gas Ratio 15-to-1 After Drill PV-10 Value Sensitivities Internal Rate of Return Sensitivities $4.5 200% 175% $4.0 180% $4.0 160% $3.5 140% $2.9
Slide 16: West Cote Blanche Bay
West Cote Blanche Bay 2009 Activity Update • Began 2009 drilling program on June 5 th • Plan to drill approximately 8 to 10 wells at West Cote during 2009 Inventory • Net proved reserves of 13.40 MMBOE¹ – 100% third party engineered West Cote Blanche Bay Production Facilities • Estimated YE’09 Reser
Slide 17: Hackberry
Hackberry 2009 Activity Update • Entered into a joint exploration agreement covering approximately 3,058 net acres adjacent to the East Hackberry field – Represents a significant increase in footprint at Hackberry, growing Gulfport’s acreage position by approximately 39% • Plan to drill approximatel
Slide 18: Appendix
Appendix 17 GULFPORT
Slide 19: Hedged Production
Hedged Production Gulfport Energy Corporation Gulfport Energy Corporation Fixed Price Contracts¹ Fixed Price Contracts¹ 2009 2010 Weighted Average Barrels Per Weighted Average Barrels Per Month Month Daily Price Day Daily Price Day July-09 $55.17 3,000 January-10 $54.81 3,000 August-09 $55.17 3,000
Slide 20: Bakken Shale
Bakken Shale • Based upon the identified geologic trends, • Bakken Shale Gulfport began actively pursuing acreage – ~900 net acres early in the play’s development, effectively achieving first mover advantages • Located in Montana, North Dakota, South • New technology is key to field development Dako
Slide 21: Thailand
Thailand Through an indirect equity investment in APICO, Gulfport has gained exposure to a natural gas play in northeast Thailand – Third party engineers Gaffney Cline credit wells producing in the Phu Horm gas field with approximately ½ TCF¹ of reserves Net to Gulfport’s interest, total proved rese
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