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

Gastar Exploration, Ltd.

October 31, 2005 09:00 ET

Gastar Exploration Ltd. Updates Status of Transaction

HOUSTON, TEXAS--(CCNMatthews - Oct. 31, 2005) - Gastar Exploration Ltd. (TSX:YGA) (OTCBB:GSREF) announced today that it expects closing of the previously announced transactions with Chesapeake Energy Corporation (NYSE: CHK) to occur on or before November 9, 2005. The revised closing date is due to delays in due diligence review and completion of definitive agreements. Both Gastar and Chesapeake remain committed to closing the transaction and have amended the original Letter of Intent to extend the terms until the revised closing date.

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 coal bed methane (CBM) development. The Company owns and controls exploration and development acreage in the Deep Bossier gas play of East Texas and 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 Gastar's Gippsland Basins 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 2005, on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and has disclosed in the Company's registration statement on Form S-1 filed with United States Securities and Exchange Commission.

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