Gastar Exploration, Ltd.

Gastar Exploration, Ltd.

March 15, 2005 12:02 ET

Gastar Exploration, Ltd. Announces 2004 Year-End Reserves and Increased Texas Acreage- Significant Reserve Additions Attributable to its Deep Bossier Activity


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GASTAR EXPLORATION, LTD.

TSX SYMBOL: YGA
OTC Bulletin Board SYMBOL: GSREF

MARCH 15, 2005 - 12:02 ET

Gastar Exploration, Ltd. Announces 2004 Year-End
Reserves and Increased Texas Acreage- Significant
Reserve Additions Attributable to its Deep Bossier
Activity

MT. PLEASANT, MICHIGAN--(CCNMatthews - 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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Gastar Exploration, Ltd.
    J. Russell Porter
    (989) 773-7050
    (989) 773-0006 (FAX)
    Email: rporter@gastar.com
    Website: www.gastar.com
    or
    Gastar Exploration, Ltd.
    2480 West Campus Drive, Bldg C
    Mt. Pleasant, MI 48858
    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.