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Gulfport rallies after new well yields more oil than predecessor

Gulfport Energy (GPOR) is surging after the company announced peak production results for its second horizontal well in the Utica Shale region. The second well, known as Boy Scout 1-33H, is producing more oil than Gulfport’s first horizontal well, according to the company. Specifically, Boy Scout 1-33H is yielding 1,560 barrels of oil per day at peak levels, versus 432 barrels of oil for the company's first horizontal Utica Shale well, known as Wagner 1-28H, Gulfport said. However, Wagner has produced more natural gas, yielding 17.1M cubic feet per day at peak levels, versus 7.1M per day at peak levels for Boy Scout, Gulfport added. Meanwhile, the company added that its facilities hadn't sustained any apparent damage from Hurricane Isaac. In a note to investors earlier today, Sterne Agee analyst Tim Rezvan wrote that the results from the Boy Scout well were strong, and bode well for the company's third quarter earnings outlook. Rezvan expects analysts' consensus third quarter earnings per share estimate for Gulfport to increase as a result of today's news, and he maintains a $38 target and Buy rating on the shares. In mid-morning trading, Gulfport jumped $2.50, or 9.72%, to $28.22.