Investments accounted for by the equity method consist of the following as of June 30, 2011 and December 31, 2010.

Tatex Thailand II, LLC

During 2005, the Company purchased a 23.5% ownership interest in Tatex Thailand II, LLC ("Tatex") at a cost of $2,400,000. The remaining interests in Tatex are owned by entities controlled by Wexford. Tatex, a non-public entity, holds 85,122 of the 1,000,000 outstanding shares of APICO, LLC ("APICO"), an international oil and gas exploration company. APICO has a reserve base located in Southeast Asia through its ownership of concessions covering two million acres which includes the Phu Horm Field. During the six months ended June 30, 2011, Gulfport received $329,000 in distributions, bringing its total investment in Tatex to $1,572,000. The loss on equity investment related to Tatex was immaterial for the six months ended June 30, 2011 and 2010.

Tatex Thailand III, LLC

During the first quarter of 2008, the Company purchased a 5% ownership interest in Tatex Thailand III, LLC ("Tatex III") at a cost of $850,000. In December 2009, the Company purchased an additional approximately 12.9% ownership interest at a cost of approximately $3,385,000 bringing its total ownership interest to approximately 17.9%. Approximately 68.7% of the remaining interests in Tatex III are owned by entities controlled by Wexford. During the six months ended June 30, 2011, Gulfport paid $1,968,000 in cash calls, bringing its total investment in Tatex III (including previous investments) to $6,490,000. The Company recognized a loss on equity investment of $138,000 and $104,000 for the six months ended June 30, 2011 and 2010, respectively, which is included in other income (expense) in the consolidated statements of operations.

Grizzly Oil Sands ULC

During the third quarter of 2006, the Company, through its wholly owned subsidiary Grizzly Holdings Inc., purchased a 24.9999% interest in Grizzly, a Canadian unlimited liability company, for approximately $8,199,000. The remaining interests in Grizzly are owned by entities controlled by Wexford. During 2006 and 2007, Grizzly acquired leases in the Athabasca region located in the Alberta Province near Fort McMurray near other oil sands development projects. Grizzly has drilled core holes and water supply test wells in nine separate lease blocks for feasibility of oil production and conducted a seismic program. In March 2010, Grizzly filed an application in Alberta, Canada for the development of an 11,300 barrel per day SAGD facility at Algar Lake. As of June 30, 2011, Gulfport's net investment in Grizzly was $42,118,000. During the six months ended June 30, 2011, the Company paid $15,539,000 in cash calls. Grizzly's functional currency is the Canadian dollar. The Company's investment in Grizzly was increased by $232,000 and $938,000 as a result of a currency translation gain for the three months and six months ended June 30, 2011, respectively. The Company recognized a loss on equity investment of $558,000 and $813,000 for the three months and six months ended June 30, 2011, respectively, and $194,000 and $165,000 for the three months and six months ended June 30, 2010, respectively, which is included in other income (expense) in the consolidated statements of operations.

The Company, through its wholly owned subsidiary Grizzly Holdings Inc., entered into a loan agreement with Grizzly effective January 1, 2008, under which Grizzly may borrow funds from the Company. Borrowed funds initially bore interest at LIBOR plus 400 basis points and had an original maturity date of December 31, 2012. Effective April 1, 2010, the loan agreement was amended to modify the interest rate to 0.69% and change the maturity date to December 31, 2011. Effective October 15, 2010, the loan agreement was further amended to change the maturity date to December 31, 2012. Interest is paid on a paid-in-kind basis by increasing the outstanding balance of the loan. The Company loaned Grizzly approximately $3,181,000 during the six months ended June 30, 2011. The Company recognized interest income of approximately $40,000 and $76,000 for the three months and six months ended June 30, 2011, respectively, and $29,000 and $201,000 for the three months and six months ended June 30, 2010, respectively, which is included in interest income in the consolidated statements of operations. The note balance was increased by approximately $169,000 and $632,000 as a result of a currency translation gain for the three months and six months ended June 30, 2011, respectively. The total $23,895,000 due from Grizzly at June 30, 2011 is included in note receivable – related party on the accompanying consolidated balance sheets.