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Gulfport to buy acreage in Oklahoma's SCOOP for $1.85 billion
December 14, 2016 / 10:18 PM / a year ago

Gulfport to buy acreage in Oklahoma's SCOOP for $1.85 billion

(Reuters) - Gulfport Energy Corp (GPOR.O) said it would buy acreage in Oklahoma’s SCOOP region from a privately held company for $1.85 billion.

The purchase price consists of $1.35 billion in cash and about 18.8 million of Gulfport’s shares.

Oil companies have resumed buying oil and gas acreage in low-cost shale fields in the United States, restocking their inventories on a bet that a two-year slump in the price of oil has abated.

Gulfport said it would buy 46,400 acres from Vitruvian II Woodford LLC, a portfolio company of Quantum Energy Partners, a Texas-based private equity and venture capital firm.

Part of the Woodford Shale formation, SCOOP is a southern extension of the Cana play, a belt several miles wide containing wet gas.

The assets being acquired had net production of 183 million cubic feet equivalent per day in October.

Four rigs are currently operating on the acreage and Gulfport plans to add two more rigs in 2018.

Reporting by Swetha Gopinath and John Benny in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta

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