Gulfport Energy Corp. (Nasdaq: GPOR) has begun an underwritten public offering of 9,000,000 shares of its common stock subject to market and other conditions.
Gulfport, headquartered in Oklahoma City, intends to use the net proceeds from this offering together with the net proceeds from a possible private placement of high yield notes to fund its pending acquisition of oil and gas assets in the Utica Shale in Ohio and for general corporate purposes, which may include expenditures associated with Gulfport's 2013 drilling programs.
The underwriters will have an option to purchase up to an additional 1,350,000 shares from Gulfport solely to cover over-allotments.
Credit Suisse Securities (USA) LLC is acting as sole book-running manager.
Gulfport has also entered into a definitive agreement to purchase approximately 30,000 net acres in the Utica Shale in eastern Ohio from Windsor Ohio LLC, an affiliate of Wexford Capital LP, for approximately $300 million.
According to the release, this acquisition will increase Gulfport's leasehold interests in the Utica Shale to approximately 137,000 gross acres. The transaction excludes 14 existing wells, along with certain acreage surrounding each well and is expected to close prior to the end of the year.
Gulfport will continue to serve as operator of its acreage in the Utica Shale.
The transaction was approved by a special committee of Gulfport's board of directors. Tudor Pickering Holt & Co. acted as advisor to the special committee.
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