Gulfport Energy Corporation (NASDAQ:GPOR) Price Targets Hiked Following First Quarter Production Update – RNO

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Dallas, Texas 04/23/2014 (FINANCIALSTRENDS) –  Gulfport Energy Corporation (NASDAQ:GPOR) is seeing the benefits of being able to match the production with its own prior first quarter guidance. Several analysts have moved to hike GPOR price targets after the April 9 quarterly production report and positive news out of Canada about the Grizzly Oil Sands development.

Gulfport Energy Meets Guidance for First Quarter Production

Gulfport said in its first quarter production update report that 2014 production for the quarter averaged approximately 27,100 barrels of oil (boe) equivalent per day. This doesn’t include the 900 boe per day during the first quarter that is attributable to the company’s acquisition of Rhino Resource Partners, L.P. (NYSE:RNO) interests in the Utica Shale development.

Euro Pacific therefore raised its price target for GPOR from $72 to $82. Northland Capital likewise moved its target price for the company to $80, and RBC also upped the price target for GPOR from $62 to $72.

Grizzly Shows Muscle to Prop Up GPOR

Obviously, analysts aren’t just adding $10 to the price target because the company managed to meet its own guidance. It’s also about Grizzly Oil Sands ULC in Canada, in which Gulfport owns a 24.9% interest. This development managed to achieve its first bitumen production at its first SAGD facility at Algar Lake during the first quarter of 2014.

Last month,  production at Algar Lake averaged approximately 30 barrels of bitumen per day. At present, Grizzly has seven of the ten well pairs on full steam circulation. By next month, they hope to have all ten well pairs on full circulation.

Furthermore, Grizzly’s Windell rail transloading facility at Conklin, Alberta kicked off operations by hauling the first load of dilbit by truck to the Windell terminal, to be sold in the US Gulf Coast market.

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