SOURCE: Gastar Exploration, Ltd.

July 21, 2005 15:05 ET

Gastar Exploration, Ltd. Announces Initial Production From Its Greer #1 Well in East Texas

HOUSTON, TX -- (MARKET WIRE) -- July 21, 2005 -- Gastar Exploration, Ltd. (TSX: YGA) (OTC: GSREF) announced today that gas sales from the Greer #1 well have begun at an initial gross sales rate of approximately 5 MMCFD (3.77 MMCFD net to Gastar) with over 10,000 psi of flowing tubing pressure. The well is completed in a single Deep Bossier sand package at depths of 17,370 to 17,485 feet. Gastar expects to add a completion in the Greer well in a second Deep Bossier zone (approximately 8 net feet of high porosity pay at 16,700 feet) after six to nine months of production from the current completion. The Greer #1 well also encountered shallower Upper Bossier, Cotton Valley and Travis Peak zones that appear to contain commercial reserves based on log analysis and drilling shows.

With the initiation of production of the Greer well, Gastar has a total of four wells producing in the Hilltop area from the Deep Bossier sands. The Company is currently preparing to frac and complete the F-K #2 well in the Deep Bossier "K" sands below 18,000 feet. The Donelson #1 well is drilling at an approximate depth of 13,350 feet with total depth for the Donelson well expected to be between 17,500 and 19,000 feet. Gastar is also beginning operations to re-frac the Cheney #1 well to effectively stimulate the primary pay zone in the well.

J. Russell Porter, Gastar's President & CEO, commented, "Gastar is continuing to actively pursue the exploitation and development of the Deep Bossier and shallower potential reserves in the Hilltop area of East Texas. In addition to drilling activity in the Deep Bossier play, we are beginning the permitting process for a large scale 3-D seismic survey and are planning the drilling of wells to test and confirm the drilling shows and log shows seen to date in the shallower Pettet and Travis Peak formations. We continue to believe that our approximate 52,000 gross acre lease position (approximately 37,000 net acres to Gastar) contains significant natural gas reserves and will result in very attractive returns for our shareholders, and these early results lend credence to that belief."

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 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.
    1331 Lamar, Suite 1080
    Houston, TX 77010
    (713) 739-1800
    (713) 739-0458 FAX
    Attention J. Russell Porter

    E-Mail: Email Contact
    Web Site: www.gastar.com