SOURCE: Gastar Exploration, Ltd.

March 15, 2005 12:21 ET

Gastar Exploration, Ltd. Announces 2004 Year-End Reserves and Increased Texas Acreage

Significant Reserve Additions Attributable to Its Deep Bossier Activity

MT. PLEASANT, MI -- (MARKET WIRE) -- March 15, 2005 -- Gastar Exploration, Ltd. (TSX: YGA); (OTC: GSREF) today announced that 2004 year-end net proven reserves totaled 20.7 Bcfe and year-end net 2P (proven plus probable) reserves totaled 62.2 Bcfe based on constant price assumptions under Canadian guidelines NI 51-101 in reports from Netherland Sewell & Associates, Inc., the Company's independent third-party reserve engineers. This is an increase in net proven reserves of 162% over the year-end 2003 proven reserves of 7.9 Bcfe.

The primary geographic area from which the increased reserves were obtained was the Company's Deep Bossier Hilltop Area play in East Texas. The Company's independent third-party reserve engineers have booked 2P (proven and probable) gross recoverable reserves of 93.6 Bcfe (48.2 Bcfe net to Gastar) associated with a total of thirteen (13) 160-acre locations in the Hilltop area. These reserves were also based on constant price assumptions under Canadian guidelines NI 51-101.

Gastar and its partners have increased their leasehold position in the East Texas Deep Bossier Hilltop area from approximately 35,000 gross acres to approximately 45,000 gross acres (21,612 net acres to Gastar) as of year-end 2004 and continue to acquire acreage in East Texas based on the results of drilling activities and on additional proprietarily reprocessed seismic information.

Commenting on the announcement, J. Russell Porter, Gastar's President and CEO said, "The thirteen locations that account for the 2P reserves booked in East Texas represent approximately 5% of the 45,000 gross acres that Gastar and its partners had under lease in East Texas at year-end 2004. We continue to believe, based on our activities and the activities of other operators in the area, that the Deep Bossier play represents a significant new exploration and development frontier in the East Texas Basin."

Gastar Exploration, Ltd. is an exploration and production company focused on finding and developing natural gas assets in North America and Australia. The Company pursues a balanced strategy combining low-risk CBM development with select higher risk, deep natural gas exploration prospects. Gastar's CBM activities are conducted within the Powder River Basin of Wyoming and upon the approximate 4 million acres controlled by Gastar and its Joint Development partners in Australia's Gunnedah Basin, PEL 238 and Gastar's Gippsland Basins located in New South Wales and Victoria respectively. The Company owns and controls exploration and development acreage in the Deep Hilltop Sand gas play of East Texas as well as in the deep Trenton-Black River play in the Appalachian Basin.

Required Cautionary Statements

The estimate of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to aggregation. Mcfe's may be misleading, particularly if used in isolation. An Mcfe conversion ratio of 1 Bbl : 6 Mcf is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. One MMCfe equates to 1,000 Mcfe's. One Bcfe equates to 1,000 MMcfe's.

Safe Harbor Statement and Disclaimer

This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," and certain of the other foregoing statements may be deemed "forward-looking statements." Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors as described in the Company's Annual Information Form filed as of May 2004, on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Contact Information:
    Gastar Exploration, Ltd.
    2480 West Campus Drive, Bldg C
    Mt. Pleasant, MI 48858
    (989) 773-7050
    FAX (989) 773-0006
    Attention J. Russell Porter

    E-Mail: rporter@gastar.com
    Web Site: www.gastar.com