Good day, ladies and gentlemen, and welcome to the thirdquarter 2007 Gulfport Energy earnings conference call. My name is Samuel, andI'll be your operator for today. At this time, all participants are in alisten-only-mode. We will facilitate a question-and-answer session toward theend of this conference (Operator Instructions). As a reminder, this conference is being recorded for replaypurposes. I would now like to turn the call over to today's host, Mr. JohnKilgallon. Please proceed.

Thank you, Sam, and good morning. Welcome to the GulfportEnergy third quarter 2007 earnings conference call. I'm John Kilgallon,Director of Investor Relations. With me today are Jim Palm, Chief ExecutiveOfficer; Mike Moore, Chief Financial Officer; and Mike Liddell, Chairman of theBoard. During this conference call, representatives of the Companymay make certain forward-looking statements relating to the Company's financialcondition, results of operations, plans, objectives and future performance. These generally can be identified by the fact that they donot relate strictly to historical or current facts. We caution that the actualresults could differ materially from those indicated in our forward-lookingstatements due to a variety of factors. Information concerning these factors canbe found in the Company's filings with the SEC. In addition, we may make reference to other non-GAAPmeasures, this morning. If this occurs, the appropriate reconciliation to theGAAP measures will be posted on our website promptly. Today, we'd like to walk you through an overview of ourthird quarter earnings and update you on our operations in West Cote BlancheBay field as well as our exploratory activities in Hackberry and an update onour investment plans. We'll start this morning with Mike Moore, our CFO, who'llprovide an overview of the third quarter results. Mike?

Thanks, John. In the third quarter 2007, the companyreported net income of $12.7 million, or $0.33 per diluted share as compared to$0.26 per share in the second quarter of 2007 and $0.37 per share in the thirdquarter of 2006. In the third quarter of 2007, the company generated $21.3million of the EBITDA and $20.9 million of operating cash flow before workingcapital changes. Production volumes for the third quarter 2007 totaledapproximately 440,000 barrels of oil equivalent, or BOEs, or approximately4,790 BOEs per day, which is up 11% from approximately 396,000 BOEs in thesecond quarter of 2007 and up approximately 16% compared to the third quarterof 2006. Total net crude oil production for the quarter wasapproximately 4,400 barrels of oil at an average realized price is $70.46 perbarrel. Total net natural gas production for the quarter was approximately 218million cubic feet at an average realized price of $6.88 per MCF. Measured (ph)third quarter realized price was $68.05 per barrel of oil equipment. For the third quarter, leased operating expenses wereapproximately $4 million, or $9.10 per BOE. LOE had trended higher this yeardue to the increase in associated labor and maintenance related to adding threenew compressors and a production barge in southern Louisiana. In addition, thetotal work down the field has increased, which also drives adequately cost. G&A remained virtually unchanged for the quarter atapproximately $1.2 million, or $2.71 per BOE. DD&A was $7.8 million, or$17.81 per BOE for that quarter. DD&A has risen over the past few quartersdue to the mix of wells we've drilled this year. For the third quarter 2007, total capital expenditures,including the activity in Canada, increased to $49.2 million on an accrualbasis as a result of the added activity of having two rigs drilling at bothWest Cote and Hackberry. CapEx attributed to our project in Canada totaled $5.2million…

Thanks, Mike. In the third quarter, we continued to grow ourproduction base at West Cote and began bringing on new production from ourexploratory efforts at Hackberry. At West Cote, we've drilled six wells this quarter and allsix wells are productive. Year-to-date, we have drilled 22 wells at West Cote,of which 18 are productive and 4 were non-commercial. We remain on track todrill our projected 26 wells at West Cote for the year. We performed 12 recompletions in the third quarter at WestCote, bringing our year-to-date total to 49 recompletions. As Mike mentioned,we are behind on our production guidance of West Cote. We've maintained an active drilling program at the fieldover the course of the year. However, this year' s program has not deliveredthe expected level of growth as planned. The late wells drilled this year have had qualityperformance issues, and the number of dry holes is up this year as well. Inaddition, we've also battled a few infrastructure issues because of thesubstantial growth we've tried to achieve this year. We estimate we weredeferred about 25,000 barrels of oil this quarter. Until we see improved yields from our new wells, we will bemaintained a one-rig program at West Cote going further. One rig should becapable of drilling 17 to 20 wells in a calendar year. This deal continues to be a valuable core asset to thecompany, given its production is prominently heavy Louisiana sweet crude, whichprovides significant cash generation at current commodity prices. Capital will be closely watched, going forward, to insureadequate return on dollar spent. We're also continuing to look at the MLPmarket. Given recent premiums paid for properties with similar cash flowcharacteristic, we believe, a portion of our West Cote field fits in thatmodel. Turning to Hackberry. Our exploratory efforts are providedmeaningful production this quarter. Production from the Hackberry…

Thanks, Jim. Sam, at this point, we would like to turn thecall over to the Q&A section, if you could please queue the questions?

(Operator Instructions) Our first question comes from RonMills with Johnson Rice. Please proceed.

Good morning, guys. As it relates to the Bakken play, justout of curiosity, there is a lot obviously have been said about that playrecently, can you give us an idea of where figure (inaudible) 12,000 net acresare located in terms of potential counties and beside the OEG, who are some ofthe other operator are who have proposed wells to you?

You know, Ron, 35% of our equity is in Montreal County, 50%of the acreage is in Dunberg and McKenzie counties, which are nearby and theproposals we have to date are from EOG, Marathon, Headington and Continentalprimarily.

Okay. And how quickly do you think you will get well drilledin and/or have data to talk about on this place.

Well, we are trying to see what’s going to happen. The thingsare speeding up and we are participating in wells right now. We’ve alreadycommitted to about a $1 million so far and the last part of 2000. And Ron it’sreally not out there. We are acquiring more acreage. You know we will get someguidance before the end of the year but I wouldn’t be surprised if next year wespend $1 million or more.

Did you say $10 million?

$10 million or more up there because we're already at a$1,000 net to go forward this year and the year is not over.

Okay. Small clarification on the Grizzly, if they go out andraise money, you on 25% entity, which you receive proceeds from that would beat the actual company, corporate levels selling shares.

We would not receive proceeds from them.

And then finally in West Cote in Hackberry this you hadthree to four rigs operating throughout the majority of the year. You mighthave read into your comments that next year you plan on having one rig activein both plays for majority of the year and to the expense you get dependingupon timing for permits for the additional land locations that you may end upwith the second rig at Hackberry. I’m just trying to get sense is the 2008 well count versus2007

This point of West Cote, one rig going will definitely bedown for hope this year and Mike said that could change, but that’s the planright now. As far as Hackberry there’s going to be times (ph) two rigsgoing because we drawn both in Lake and on land. But I think for most partprobably want one rig will get us there next year and one rig in time.

And would you be able to drill if, are you still planning ondrilling them, as similar number of wells in Hackberry next year.

It’s got basic sense driven, but we like and hope we say andwe going to plan, as we go along, but good things are happening.

I just want one thing. You clearly, the two well, the besttwo wells that you talked about it at Hackberry what did you say thosereproducing per well.

That’s been about 250 barrels at day net to Gulfport andthat’s per well.

Okay and then the production that you talked, you mademention of that West Cote some of that was well performances. Can you give uslittle more color on the well performance and also what was not wellperformance related IE, its sounds like you had compressor, you added in newcompressor and that took time.

That’s right. First with regard to the well performance, wejust didn’t grow to do well this year, as we have the last couple of wells,last couple of years and to talk about we had dry holes (ph) surely and we havesome reported wells early so that challenges to meet our numbers this year. But sure as regard to the compressors we had some runtimeissues with the new compressor, but we also had some stand by over compressorsthat we had more runtime with and we, but we got programs to replace in those, We had to slow down for over a while, while we put in fifthcompressors that were ordered last year. The net affect to that was about25,000 barrels of which heard. Because we couldn’t come up with the gas-to-gaslight thing.

Okay. Let me let some others listen of (inaudible) back onit and I will jump back.

Next question comes from Neal Dingmann with Dahlman Rose.Please proceed.

Good morning guys.

Good morning, hi Neal.

Say Jim you say are there infrastructure West Cote wouldthat just sort of temporary you see that you had there and I mean I think youshould be or you said now going forward.

Hello Neal. I am going to worry too much about, it wastemporary the long operation that we got a couple of mechanics that we justhired that first one came on this week and they are work 7 and 7. So. Itseveral pampers (ph) have been take care of things now we are going to have twofull time mechanics, so we think we got the problem take care.

Okay. And then moving on the Hackberry, we are going toafter few more wells where you then start include that guidance in and you wantto seen few more wells behind that will be seen in your guidance today incorporate set.

Yeah. We will give ’08 guidance some time before the end ofthe year.

Okay. And then on the Bakken you say besides maybe partnernot, is there are acres available or is that pretty come to combine now outthere on that piece?

We are out there still pick up acres, still acres toavailable. But it’s all area, its competitive.

Sure, okay. And then on -- you didn’t mention anything newto report on that Thailand or the other forum play?

Not really, things are going long this time, but nothingreally. It’s driven long.

Okay. And then lastly, I assume it still on, you mentionedabout maybe had in rigor next year I guess still rig availability that stillpretty good down there?

Yeah. No problem.

Okay. Okay, thanks guys that’s all for now.

Next question comes from Scott (inaudible). Please proceed.

Hi guys. Just wanted if you guys can give me a little morecolor on the dry holes, you guys are run into this year?

Yeah. For the most part its been released, - we have thedrill some wells in Halo around West Cote where we don’t have producing wellthose state Nexus hold that agreed to drill two wells on high level like weusually do, actually had one producer and one dry hole out there.

Okay. Will there any implications on year end reserves withthe dry holes?

No, I don’t know surely tell, we still got the rest of theyear to drill.

Okay. Now moving to Grizzly, can you guys comment on thepossible impact of the proposed Alberta royalty increase?

No. It hasn’t been as big a deal, as we though it might.We’re seen reports from the investment bankers up there. We’ve seen the way thesmall cap starts and responded, seems to be more of a non-issues and we thoughtit would be.

Okay. And with respect to possibly, you know being someassets, what are the declines on assets that you guys are first thinking aboutdoing that?

We got lot to annualize before we really do that, and we’relooking at a whole (indiscernible) and whole field that it’s complicated butnormal. We think there is some chance over its going to fit the modal prettywell, but we’ve got a lot of research still to do.

Okay. Great. Thanks.

Next question comes from Bo McKenzie with Pritchard Capital.Please proceed.

Hi guys. You just give me the couple of my questions.Thanks.

Next, we have the question from Rose Dahlman with MidwoodCapital. Please proceed.

Hi, guys. Congratulation on your progress. Jim, I justwanted to make sure, I understood some math that you had, you said you would beselling your ballpark 10% of the Canadian Oil Sands for $1.5 billion. So thatwould mean -- sorry for $150 million. So the plan roughly $1.5 billion with thevalue. You guys, with the little less than quarter-than-quarter, soit looks like there about the $350 million of value. The Gulfport 9 or $10 ofshare with the value in Canada, Montana math right?

Well, I’ll tell you, what’s you're saying, it sounds like asign but its not really our place to speculate about the Grizzly values, andforth. So we can’t to have hold up I’m talking about that.

That’s Okay. I was just going of that you're going to raisea $150 million and that would be 9.5 to 12% of Grizzly, so I was just backinginto sort of the implied value of Grizzly at about $1.5 billion?

We didn’t get match their time stand good.

Okay. And then maybe you can comment on - or maybe not but Iknow noted in some cases valuations up there been it has a dollar fullrecoverable, so in this case we have $4 billion recoverable. What needs tohappen to these assets before sort of conversion, conversion on that valuationor before it begins to look like the property that transact with thatvaluation?

Well, I think we’re just going to draw some more well, so wecan evaluate the property better that’s all the engineering firms need, butwe’ve just evaluated the tiny fraction of our acreage so far and those we drillwells will get more of this included.

Okay. Very good. I appreciate to take my questions.

Next we have follow on questions from Ron Mills with JohnsonRice. Please proceed.

Any ideas, guys? Next year in terms of on a lower rig count.What the capital budget would look like and more importantly, I guess how muchdo you think you will end up spending up in Canada?

Ron, I’m not sure on Canada at this point, we going to drill80 to 120 barrel up there. So those economic should be about the same, butbeyond that I’m not sure for Canada. But also as it relates to, are you askingabout our…

With this year, you’re going to spend..?

We’ll -- next for West Cote Lake as well.

Exactly, its sounds like that will be down a little bitrelative to this year.

Right. Our cost will be down. Our cost for well have --we’ll be about the same in West Cote next year, as they were this year will bestrong as wells at this point. We’re still working on our capital budget. Wedon’t know for sure we’ll no more latter in the year.

Okay. And then what are you, you sounds like you also issuedsome size make up in Canada. What’s that design to do?

Ron, this will be specific on Algar Lake this year, 3D. Andit helps you model your reservoir enough your plan, your horizontal wells. It’sjust to really understand the reservoir there because we anticipate we don’tprovide the facility there.

And any latest update on what you all think the cost of the10,000-barrel a day a facility would end up running?

Yes. More or less in the $215 million range. Just to getballpark number.

Okay. Thank you guys.

(Operator Instructions) We have a question is from Rob Burt(ph) with CellPoint Capital. Please proceed.

Hi, guys. I heard before that you all mentioned putting partof West Cote into an MOP. How much West Cote production would you all bethinking about putting into an MOP?

Rob, we are still just exploring idea, this is too early totell, But and we might put in anyone, we’ll see.

Okay. Thanks.

Mr. Kilgallon, we have no further questions at this time.I’ll turn the call back over to you for any closing remark. You can hear me?

Thank you, Sam. The replay of this call will be available temporarilyon the company’s website and can be accessed at gulfportenergy.com. Thank youfor your interest and time in Gulfport this morning. This concludes our call.

Thank you ladies and gentlemen for your participation intoday’s conference. This concludes the presentation, you may all disconnect.Have a great day.