SOURCE: Gastar Exploration, Ltd.

June 03, 2005 09:54 ET

Gastar Exploration, Ltd. Initial Production From Lone Oak Ranch #1 Well

HOUSTON, TX -- (MARKET WIRE) -- June 3, 2005 -- Gastar Exploration, Ltd. (TSX: YGA); (OTC: GSREF) announced today that gas sales from the Lone Oak Ranch #1 well ("LOR #1 well") have begun at an initial gross sales rate of approximately 7 MMCFD (3.8 MMCFD net to Gastar).

J. Russell Porter, Gastar's President & CEO, commented, "The successful completion and commercial production of the LOR #1 well opens up a meaningful portion of Gastar's acreage position for further exploration and development. The LOR #1 well was drilled into a different fault block than were the Company's earlier successful Deep Bossier wells. This expands the potential Deep Bossier reserve basis for exploration and development. We are also encouraged that Burlington Resources (NYSE: BR) has permitted several Deep Bossier exploratory wells in close proximity to the LOR #1 well."

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

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