Gastar Exploration, Ltd.
TSX : YGA
PINK SHEETS : GSREF

Gastar Exploration, Ltd.

June 28, 2005 22:08 ET

Gastar Exploration, Ltd. Announces Latest Well Results In East Texas Deep Bossier Area

HOUSTON, TEXAS--(CCNMatthews - June 28, 2005) - Gastar Exploration, Ltd. (TSX:YGA)(PINK SHEETS:GSREF) announced today that it has drilled the F-K #2 well to a total depth of 18,700 feet and, based on electric logs, the well encountered approximately 74 net feet of apparent pay in the Deep Bossier lower "K" sands deeper than 18,000 feet and 10 net feet of pay in another Deep Bossier sand at approximately 16,700 feet.. The well also encountered over 120 feet of indicated pay based on measured permeability from cores greater than .10 millidarcies, cross-over neutron density porosity greater than 8% and indicated natural fracturing per Halliburton Ultra-Log analysis in the shallower Travis Peak formation. Gastar is in the process of installing a 5-inch string of casing and will begin completion and testing operations in the apparent Deep Bossier pay zones. The completion activities are expected to take approximately 60 days and, if successful, initial production is expected by mid September, 2005.

Gastar is currently drilling the Donelson #1 well as 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 is currently setting the intermediate string of casing at a depth of 11,000 feet after encountering an apparent commercial discovery based on significant gas shows while drilling in the Pettet formation at a depth of approximately 10,200 feet.

Gastar's President & CEO, J. Russell Porter, issued the following comments, "The F-K #2 well is Gastar's fifth Deep Bossier well. The F-K #2 well is further confirmation that numerous deep gas-bearing sands are present over a large aerial extent and that multiple potential pay zones reduce the risk of drilling uneconomic wells on Gastar's 50,000 gross acre (approximately 37,000 net acres) lease position. Gastar has recently contracted for the acquisition of an approximate 60 square mile 3-D seismic survey covering the majority of its holdings in the Deep Bossier play and believes that this additional information will allow the Company to more optimally place future wells. Gastar is also beginning the process of analyzing the shallower potential pay zones on its acreage as a result of the shallow pays seen to date in the Donelson #1 well and numerous gas shows and encouraging core information in several recent wells that appear to be related to natural fracturing in the Travis Peak formation. While these shallower formations, especially the Travis Peak, have the potential for significant additional reserves, our focus will continue to be the Deep Bossier play, but understanding the additional economic reserves in these shallower formations can only add to the value we are creating."

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 select higher risk, deep natural gas exploration prospects with low-risk CBM development. The Company owns and controls exploration and development acreage in the Deep Bossier gas play of East Texas and exploration acreage in the deep Trenton-Black River play in the Appalachian Basin. Gastar's CBM activities are conducted within the Powder River Basin of Wyoming and upon the approximate 3.5 million acres controlled by Gastar and its Joint Development partners in Australia's Gunnedah Basin, PEL 238, and Gippsland Basin, EL 4416, located in New South Wales and Victoria respectively.

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

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