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Acquisition
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6 Months Ended | |||
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Jun. 30, 2011
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| Acquisition | ||||
| Acquisition |
In February 2011, the Company entered into agreements to acquire certain leasehold interests located in the Utica Shale in Ohio. The agreements also grant the Company an exclusive right of first refusal for a period of six months on certain additional tracts leased by the seller. Affiliates of Gulfport have agreed to participate with the Company on a 50/50 basis in the acquisition of all leases described above. Gulfport will be the operator on this acreage in the Utica Shale. As of June 30, 2011, the Company had acquired leasehold interests in approximately 33,000 gross (16,500 net) acres in the Utica Shale for approximately $37.9 million. Gulfport funded these transactions with a portion of the proceeds from a 2.8 million share offering of the Company's common stock completed in March of 2011. The Company received net proceeds (before offering expenses) of approximately $84.3 million from the equity offering, as discussed below in Note 7. The Company also has commitments which will increase its acreage position in the Utica Shale to approximately 115,000 gross (57,500 net) leasehold acres. The Company intends to continue to pursue opportunities in this area. |