SOURCE: Gastar Exploration, Ltd.

May 02, 2005 17:41 ET

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

HOUSTON, TX -- (MARKET WIRE) -- May 2, 2005 -- Gastar Exploration, Ltd. (TSX: YGA) (OTC: GSREF) announced today that Gastar and First Source Texas, Inc. ("FST"), the operator of the Gastar Greer #1 well, have drilled the Greer #1 well to a total depth of 17,800 feet and, based on gas shows during drilling and electric logs, the well encountered approximately 57 net feet of apparent pay with high indicated porosity similar to the producing zones in the Company's previous wells. FST is in the process of installing a 5-inch string of casing to a depth of 17,800 feet and will begin completion and testing in at least two apparent pay zones. The completion activities are expected to take approximately 60 days and, if successful, initial production is expected by late July, 2005.

Gastar is currently drilling the F-K #2 well at a depth of 14,350 feet and expects that well to reach a total depth of 19,000 feet in mid-June 2005. The F-K #2 well is planned to test the deeper "K" sands encountered in the F-K #1 well but not effectively fracture stimulated. In addition, the Company's Lone Oak Ranch #1 well is undergoing final completion work utilizing revised fracture stimulation design and an announcement on the results of that well is expected within the next 20 to 25 days.

Gastar's President & CEO, J. Russell Porter, issued the following comments, "The Greer #1 well is Gastar's fourth consecutive successful Deep Bossier Sand well. This well is further confirmation of the significant resource potential that Gastar and FST are exploiting in the Deep Bossier play in addition to further confirmation that multiple potential pay zones within the Deep Bossier sand packages occur over a large aerial extent. It is important to note that the Greer #1 well is projected to cost between $9 million and $10 million to drill and complete representing a significant decrease in overall costs despite the rising service cost environment."

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 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
    FAX (713) 739-0458
    Attention: J. Russell Porter

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