Another Twenty-Four Lx Minutes Menstruum - Around Other Foreign Gulfport Unloose Energy Related Political Party Transaction

I woke upward this morning time to the tidings that Gulfport Energy (NASDAQ:GPOR) is buying some other 22 K internet acres inwards the Utica Shale from Windsor Ohio - an affiliate of Wexford Capital. The price is most $10 K an acre. This is funded past times a large equity raise.

This is really like to a transaction inwards Dec 2012 where 37 K acres were purchased from Windsor Ohio for $372 million. That was besides funded past times an equity raise. The 8K describing that transaction contained the next disclosure:

Mike Liddell, Gulfport’s Chairman of the Board, is the operating fellow member of Windsor Ohio. All distributions made past times Windsor Ohio are outset paid to the Wexford members inwards accordance amongst their respective ownership interests inwards Windsor Ohio until they accept received amounts equal to their respective upper-case alphabetic quality contributions. Thereafter, distributions are made 90% to the Wexford members inwards accordance amongst their respective ownership interests together with 10% to Mr. Liddell. Upon closing of the Acquisition, Mr. Liddell received some $2.9 1 K k inwards distributions from Windsor Ohio corresponding to his 10% involvement described above.

It is an opened upward enquiry every bit to how much coin from this equity heighten volition detect its mode into Mr Liddell's pocket. The Gulfport Energy press releases produce non broach this question.

However - on a cursory await - it appears that the Windsor Ohio members accept already received dorsum their upper-case alphabetic quality contributions together with on a literal reading of the inwards a higher house quoted 8K a total 10 pct of the coin paid for this acreage volition catamenia personally to the Chairman of Gulfport Energy.

$22,000,000 is non a bad pay day. I know it is a justice - but hi - Gulfport produce non reveal this exceptional inwards their press release. Nor is it disclosed inwards their prospectus for the offering. I telephoned Paul K. Heerwagen IV (the IR officeholder together with contact on the press releases) together with asked him the enquiry directly. He hung upward on me together with did non respond provide calls.

But dearest Gulfport shareholders - y'all should accept no discomfort: the press free assures us that "the transaction was approved past times a special commission of Gulfport’s Board of Directors."





John

Disclosure: curt Gulfport.