Press Releases

Gulfport Energy Corporation Reports Third Quarter 2009 Results

OKLAHOMA CITY, Nov. 5, 2009 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) today reported financial and operating results for the third quarter of 2009.

For the third quarter of 2009, Gulfport reported net income of $6.7 million on oil and gas revenues of $22.2 million, or $0.16 per diluted share. EBITDA (as defined below) for the third quarter of 2009 was $14.8 million and cash flow from operating activities before changes in working capital was $14.2 million.



                         Financial Highlights

 * Produced oil and gas sales volumes of 415,716 barrels of oil
   equivalent ("BOE") in the third quarter of 2009, an 8% sequential
   increase over the second quarter of 2009

 * Generated $14.8 million of EBITDA in the third quarter, a 14%
   sequential increase over the second quarter of 2009

 * Recorded net income of $6.7 million for the third quarter of 2009,
   a 31% sequential improvement over the second quarter of 2009

 * Reduced total debt by $9.2 million in the third quarter of 2009
   with an ending balance of $55.6 million, a 14% sequential reduction
   from the balance at the end of the second quarter of 2009 and a
   42% reduction year-over-year

Production

For the third quarter of 2009, net production was 373,390 barrels of oil, 160,923 thousand cubic feet ("MCF") of natural gas and 651,234 gallons of natural gas liquids ("NGL"), or 415,716 BOE. Net production for the third quarter of 2009 by region was 354,767 BOE in Southern Louisiana, 51,636 BOE in the Permian Basin and 9,313 BOE in the Bakken.

Realized price for the third quarter of 2009, which includes transportation costs, was $56.62 per barrel of oil, $3.09 per MCF of natural gas and $34.34 per barrel of NGL, for a total equivalent of $53.34 per BOE.



                        Operational Highlights

 * Grizzly received an independent resource report ("report") prepared
   by McDaniel & Associates Consultants Ltd. ("McDaniel & Associates")
   assigning 89 million barrels ("MMBBL") of recoverable best estimate
   contingent resources to its Algar Lake Project (Algar Lake Project
   represents only 4% of Grizzly's total position in the Canadian Oil
   Sands), or 22 MMBBL net to Gulfport's interest

 * Through a strategic acquisition in the Canadian Oil Sands,
   Gulfport's net acreage position in the play increased to 131,862
   acres and, in doing so, has provided sufficient scale to its
   Silvertip area to develop another major steam assisted gravity
   drainage ("SAGD") project

 * Acquired an additional 1,968 net acres in the Permian Basin,
   expanding Gulfport's total acreage position in the play to 8,405
   net acres

 * Grew production at WCBB to 3,507 barrels of oil equivalent per day
   ("BOEPD") in the third quarter, a 15% sequential increase over the
   second quarter of 2009

Operations

Gulfport has drilled a total of thirteen wells in Southern Louisiana since beginning its 2009 drilling program in June of 2009. At West Cote, Gulfport has completed its 2009 drilling program having drilled eleven wells, completing ten as producers. At Hackberry, Gulfport has drilled and set pipe on two wells and is currently drilling ahead on the third well of its 2009 program at the field. Gulfport currently expects to drill an additional two to three wells in Southern Louisiana by the end of 2009, all of which will be located at Gulfport's Hackberry field.

Gulfport continues to expand its position in the Permian Basin, acquiring an additional 1,968 net acres of leases during the second half of 2009, expanding Gulfport's total acreage position in the play to 8,405 net acres. A seismic survey has been conducted over a portion of Gulfport's newly acquired acreage and Gulfport expects to receive data for interpretation by year-end 2009. During the third quarter of 2009, Gulfport participated in the drilling of 0.5 net wells. Beginning in November, a rig returned to the field and Gulfport expects another 1.5 to 2 net wells to be drilled on its acreage by year-end 2009.

Grizzly has recently received results from third party engineers, McDaniel & Associates providing Grizzly with an evaluation of contingent resource at its Algar Lake Project. As of July 1, 2009, McDaniel & Associates assigned 89 MMBBL of recoverable best estimate contingent resources to Grizzly's Algar Lake Project. The estimates of McDaniel & Associates are summarized in the following table.


 ---------------------------------------------------------------------
 ESTIMATED COMPANY SHARE OF CONTINGENT RESOURCES AS OF JULY 1, 2009,
                  BASED ON FORECAST PRICES AND COSTS
 ---------------------------------------------------------------------
 Classification /        100% Grizzly Share   24.9999% Gulfport Share
 Level of Certainty            (MBbl)                (Mbbl)
 ---------------------------------------------------------------------
 Best Estimate of
 Contingent Resource           88,903                22,226
 ---------------------------------------------------------------------

The report assessed only the portions of sedimentary column which meet specific reservoir criteria required for economic development employing the in-situ SAGD recovery method. In addition, the evaluated area includes only the Algar Lake Project area, which represents only 4% of Grizzly's total acreage position in the Canadian Oil Sands.

Grizzly recently acquired a 40% interest in 62.5 sections in the Canadian Oil Sands, adding a total of 15,688 net acres and increasing its position in the play to 527,451 net acres. Twelve sections of this recently acquired acreage are located directly adjacent to Grizzly's Silvertip area and, over the combined acreage, has provided sufficient scale to develop another major SAGD project.

2010 Guidance

Gulfport estimates 2010 production to be in the range of 1.85 to 2.05 million BOE. Capital expenditures for 2010 are estimated to be in the range of $56 to $62 million prior to any new acreage or asset acquisitions. Operationally, Gulfport plans to drill 19 to 21 wells at WCBB, approximately 3 wells at Hackberry and 12 to 13 net wells in the Permian Basin. In Canada, Gulfport plans to participate in Grizzly's 2009-2010 winter drilling and seismic programs. For 2010, Gulfport projects lease operating expense to be in the range of $8.00 to $9.50 per BOE, general and administrative expense to be between $2.50 to $3.50 per BOE, production taxes to be between $7.00 to $8.00 per BOE and depreciation, depletion and amortization expense to be in the range of $18.00 to $20.00 per BOE.


                                                      Year Ending
                                                      12/31/2010
 Estimated Production
   Oil Equivalent - BOE                          1,850,000 - 2,050,000
   Daily Oil Equivalent Midpoint - BOEPD                 5,342

  Year-Over-Year Production Increase(1)                   15%

 Operating  Costs  per  BOE of  Projected
  Production
   Lease  Operating Expense - $/BOE                  $8.00 - $9.50
   Production  Taxes - $/BOE                         $7.00 - $8.00
   Depreciation, Depletion and
    Amortization - $/BOE                            $18.00 - $20.00
   General and Administrative - $/BOE                $2.50 - $3.50

 Budgeted Capital Expenditures - In Millions:
     Total Budgeted Capital Expenditures               $56 - $62


 (1)Based upon the daily oil equivalent midpoint for 2009 estimated
    production of 1.70 MMBOE and the daily oil equivalent midpoint for
    2010 estimated production of 1.95 MMBOE

Management's Comments

Jim Palm, Gulfport's Chief Executive Officer, commented, "We are pleased to report solid third quarter results, both operationally and financially. Looking ahead to 2010, we are eager to begin ramping-up drilling and look forward to continuing to develop the tremendous potential provided through our investment in the Canadian Oil Sands."

Presentation

An updated presentation was posted to the Company's website on the morning of November 5, 2009. The presentation can be found at www.gulfportenergy.com under the "Webcasts & Presentations" section on the "Investor Relations" page. Information on the Company's website does not constitute a portion of this press release.

Conference Call

Gulfport will host a conference call today at 1:00 p.m. CST to discuss its third quarter 2009 financial and operational results. Interested parties may listen to the call via Gulfport's website at www.gulfportenergy.com or by calling 1-866-543-6407. The passcode for the call is 31124117. A replay of the call will be available for two weeks at 1-888-286-8010. The replay passcode is 53351781. The webcast will be archived on the Company's website for one year and can be accessed on the Company's "Investor Relations" page.

About Gulfport

Gulfport Energy Corporation is an Oklahoma City-based independent oil and natural gas exploration and production company with its principal producing properties located along the Louisiana Gulf Coast and the Permian Basin in West Texas. Gulfport also holds a sizeable acreage position in the Alberta Oil Sands in Canada through its interest in Grizzly Oil Sands ULC.

Forward Looking Statements

This press release 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 statements of historical facts, included in this press release that address activities, events or developments that Gulfport expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of Gulfport's business and operations, plans, market conditions, references to future success, reference to intentions as to future matters and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by Gulfport in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with Gulfport's expectations and predictions is subject to a number of risks and uncertainties, general economic, market, credit or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by Gulfport; competitive actions by other oil and gas companies; changes in laws or regulations; and other factors, many of which are beyond the control of Gulfport. Information concerning these and other factors can be found in the Company's filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and there can be no assurances that the actual results or developments anticipated by Gulfport will be realized, or even if realized, that they will have the expected consequences to or effects on Gulfport, its business or operations. Gulfport has no intention, and disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Non-GAAP Financial Measures

EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus interest expense, income tax expense, accretion expense and depreciation, depletion and amortization. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash flows from operating activities before changes in operating assets and liabilities. The Company has presented EBITDA because it uses EBITDA as an integral part of its internal reporting to measure its performance and to evaluate the performance of its senior management. EBITDA is considered an important indicator of the operational strength of the Company's business. EBITDA eliminates the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of this measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's business. Management evaluates the costs of such tangible and intangible assets and the impact of related impairments through other financial measures, such as capital expenditures, investment spending and return on capital. Therefore, the Company believes that EBITDA provides useful information to its investors regarding its performance and overall results of operations. EBITDA and cash flow from operating activities before changes in operating assets and liabilities are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, either net income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. In addition, EBITDA and cash flow from operating activities before changes in operating assets and liabilities are not intended to represent funds available for dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The EBITDA and cash flow from operating activities before changes in operating assets and liabilities presented in this press release may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in the Company's various agreements.


                     GULFPORT ENERGY CORPORATION
                CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)


                        Three Months Ended        Nine Months Ended
                          September 30,             September 30,
                    ------------------------  ------------------------
                       2009         2008         2009         2008
                    -----------  -----------  -----------  -----------
 Revenues:
   Oil and
    condensate
    sales           $21,142,000  $34,354,000  $58,146,000  $95,636,000
   Gas sales            498,000    1,337,000    1,114,000    5,612,000
   Natural gas
    liquids sales       533,000    1,216,000    1,432,000    2,784,000
   Other income
    (expense)          (102,000)    (176,000)    (323,000)    (381,000)
                    -----------  -----------  -----------  -----------

                     22,071,000   36,731,000   60,369,000  103,651,000
                    -----------  -----------  -----------  -----------

 Costs and
  expenses:
   Lease operating
    expenses          3,442,000    6,362,000   12,511,000   14,906,000
   Production
    taxes             2,586,000    3,970,000    6,856,000   11,398,000
   Depreciation,
    depletion, and
    amortization      7,387,000    9,392,000   22,157,000   28,912,000
   General and
    administrative    1,380,000    1,748,000    3,659,000    5,270,000
   Accretion
    expense             146,000      140,000      432,000      417,000
                    -----------  -----------  -----------  -----------

                     14,941,000   21,612,000   45,615,000   60,903,000
                    -----------  -----------  -----------  -----------

 INCOME FROM
  OPERATIONS:         7,130,000   15,119,000   14,754,000   42,748,000
                    -----------  -----------  -----------  -----------

 OTHER (INCOME)
  EXPENSE:

   Interest expense     614,000    1,172,000    1,686,000    3,402,000
   Insurance
    proceeds                 --           --   (1,050,000)    (769,000)
   Interest income     (158,000)    (180,000)    (395,000)    (404,000)
                    -----------  -----------  -----------  -----------

                        456,000      992,000      241,000    2,229,000
                    -----------  -----------  -----------  -----------
 INCOME BEFORE
  INCOME TAXES        6,674,000   14,127,000   14,513,000   40,519,000


 INCOME TAX
  EXPENSE:                   --       20,000       28,000       20,000
                    -----------  -----------  -----------  -----------


 NET INCOME         $ 6,674,000  $14,107,000  $14,485,000  $40,499,000
                    ===========  ===========  ===========  ===========

 NET INCOME PER
  COMMON SHARE:

   Basic            $      0.16  $      0.33  $      0.34  $      0.95
                    ===========  ===========  ===========  ===========

   Diluted          $      0.16  $      0.33  $      0.34  $      0.94
                    ===========  ===========  ===========  ===========

   Basic weighted
    average shares
    outstanding      42,673,800   42,620,332   42,660,118   42,589,277

   Diluted
    weighted
    average shares
    outstanding      43,021,757   43,061,831   42,981,073   43,061,383




                     GULFPORT ENERGY CORPORATION
                RECONCILIATION OF EBITDA AND CASH FLOW
                             (Unaudited)

                        Three Months Ended        Nine Months Ended
                    ------------------------  ------------------------
                     Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                       2009         2008         2009         2008
                    -----------  -----------  -----------  -----------

 Net Income         $ 6,674,000  $14,107,000  $14,485,000  $40,499,000
 Interest expense       614,000    1,172,000    1,686,000    3,402,000
 Income tax expense          --       20,000       28,000       20,000
 Accretion expense      146,000      140,000      432,000      417,000
 Depreciation,
  depletion, and
  amortization        7,387,000    9,392,000   22,157,000   28,912,000
                    -----------  -----------  -----------  -----------
 EBITDA             $14,821,000  $24,831,000  $38,788,000  $73,250,000
                    ===========  ===========  ===========  ===========



                        Three Months Ended        Nine Months Ended
                    ------------------------  ------------------------
                     Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                       2009         2008         2009         2008
                    -----------  -----------  -----------  -----------

 Cash provided by
  operating
  activity          $12,941,000  $29,547,000  $35,812,000  $75,263,000
 Adjustments:
   Changes in
    assets and
    liabilities       1,307,000   (5,678,000)   1,566,000   (4,695,000)
                    -----------  -----------  -----------  -----------
 Operating Cash
  Flow              $14,248,000  $23,869,000  $37,378,000  $70,568,000
                    ===========  ===========  ===========  ===========




                     Gulfport Energy Corporation
                         Production Schedule
                             (Unaudited)

 Production Volumes:            3Q 2009   3Q 2008  YTD 2009  YTD 2008
                               --------  --------  --------  --------
 Oil (MBbls)                      373.4     361.3   1,127.7   1,131.8
 Gas (MMcf)                       160.9     135.0     320.8     559.0
 NGL (MGal)                       651.2     694.7   2,074.7   1,804.6
 Oil Equivalents (MBOE)           415.7     400.4   1,230.6   1,267.9

 Average Realized Price:

 Oil (per Bbl)                 $  56.62  $  95.08  $  51.56  $  84.50
 Gas (per Mcf)                 $   3.09  $   9.91  $   3.47  $  10.04
 NGL (per Gal)                 $   0.82  $   1.75  $   0.69  $   1.54
 Oil Equivalents (BOE)         $  53.34  $  92.19  $  49.32  $  82.05


CONTACT:  Gulfport Energy Corporation
          Investor & Media Contact:
          Investor Relations
          Paul K. Heerwagen
          405-242-4888
          pheerwagen@gulfportenergy.com