Gulfport paid Paloma $12,500 per acre in the Utica. Seems to me that Gary could sell off about 5,000 acres to raise the $65 million he needs to keep current with his debt covenants. In lieu of that, he will sell more pipeline equity before he suspends preferred dividends.
Sorry for mixing metrics, but if Ft. Berthold production doesn't matter, then there is no hope for the company. The Tuscaloosa is over, and El Halcon east Texas wells are just average at today's oil price. These are monster wells coming on line in the FBIR, and it looks to me like they should be highly profitable even at today's oil price. But this fact doesn't seem to matter.
New wells are coming in at a 38% higher IP rate than just 3 months ago. One well IP was over 5,000. At this rate of increase it looks like they should be able to produce their way out their problems.
Even at $40 per barrel, that will give you revenue of $2.2 million. The well cost is $8 million and the EURs on these wells are over 800,000 barrels. But since these results were announced, the shares are down 15% and continue in free fall. Even with oil prices up slightly. Is there any level of production that would be perceived as good news? Well costs are projected to drop to $7.5 million. Even with all the new debt, it seems like these new wells should have been viewed as good news.