Gastar Exploration, Ltd.
TSX : YGA
OTC Bulletin Board : GSREF

Gastar Exploration, Ltd.

May 25, 2005 12:53 ET

Gastar Exploration, Ltd. Announces Drilling of Sixth Deep Bossier Well

MT. PLEASANT, MICHIGAN--(CCNMatthews - May 25, 2005) - Gastar Exploration, Ltd. (TSX:YGA) (OTCBB:GSREF) announced today that Gastar, through its wholly-owned subsidiary First Source Gas, L.P., and First Texas Gas, L.P. ("FTG"), as operator, have initiated drilling activity on Gastar's sixth Deep Bossier well in the Hilltop area of East Texas. The new well, the Gastar Donelson #1 well is located approximately 1.4 miles northeast of the Gastar Fridkin-Kaufman Ltd, #1 well (the F-K #1 well) and has been permitted to a depth of 20,000 feet. Gastar expects to have an approximate 77.5% working interest position in the Donelson #1 well and 640-acre unit. The well is expected to take approximately 100 days to drill and an additional 30 to 60 days to attempt completions and production tests if apparent pay sands are encountered.

J. Russell Porter, Gastar's President & CEO, commented, "The Donelson #1 well will be drilled in an offset location to one of the deep wells drilled by another company in the early 1980's, the Tipco Lanier #1, which tested and produced from the Deep Bossier formation. Gastar continues to pursue a drilling plan in the East Texas Hilltop area based upon its earlier successes and which is designed to both confirm the presence of significant natural gas reserves and enhance the Company's cash flow through production. Gastar is also currently finalizing design plans for the completion of the Greer #1 well and expects to place the LOR #1 well on line within the next 7 days upon the completion of gathering pipelines from the well location to the Company's existing gas processing facilities."

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 development acreage in the Deep Bossier Sand gas play of East Texas and in the deep Trenton-Black River play in the Appalachian Basin.

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 March 30, 2005, on the System for Electronic Document Analysis and Retrieval (SEDAR) at http://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

  • Gastar Exploration, Ltd.
    J. Russell Porter
    (713) 739-1800
    (713) 739-0458 (FAX)
    Email: rporter@gastar.com
    Website: http://www.gastar.com
    or
    Gastar Exploration, Ltd.
    1331 Lamar, Suite 1080
    Houston, TX 77010