Gulfport Energy Corporation optimistic it can meet oil production guidance
During an afternoon conference call, Gulfport Energy Corporation (Nasdaq: GPOR) executives said they are optimistic the gas exploration company will achieve its expectations of a large increase in oil production.
CEO Jim Palm said the company continues to expect total oil production in the range of 1.7 million to 1.9 million barrels for the year ending December 31, compared with 0.87 million barrels in 2006.
An analyst on the call was concerned the company is running behind in production.
“It’s a pretty broad range,” Palm said. “But we’ll continue to evaluate [our guidance] and at this point in time, we’re not ready to change it.”
Before the opening bell, Gulfport reported second-quarter net income of $9.6 million, or $0.26 a share, compared with $7 million, or $0.21 a share, in the year-ago period. Revenue for the three months ended June 30 surged to $25 million, up from $14.4 million during the same period of 2006.
The firm drilled 11 wells in southern Louisiana during the quarter. Two wells are awaiting completion and two wells are in the process of initial completion, the company said in a statement.
Gulfport reported it owns a 25% interest in the Oklahoma City-based oil exploration company Grizzly Oil Sands ULC, which is planning an assessment of its acreage in the Canadian winter 2007-08 drilling season and intends to drill between 100 and 120 holes.
“In Canada, Grizzly is making progress. We continue to believe our Canadian assets are not fully valued in our portfolio,” Palm said. “We believe Gulfport remains the only small-cap U.S. independent with a stake in the Oil Sands play.”
During the quarter, the company’s cash flow from operating activities before changes in working capital was $16.6 million, up from $6.3 million in the same period a year ago.
In today’s trading, shares closed down $0.31, or 1.69%, at $18.05. Over the last 52 weeks, shares have ranged between $9.82 and $23.38.
