HOUSTON, June 1 /CNW/ - Gastar Exploration Ltd. (AMEX: GST) (TSX:YGA) is
pleased to announce that it has drilled the Donelson #3 well, located in Leon
County, Texas, to a total depth of 19,200 feet. Based on preliminary analysis
of electric logs and natural gas shows encountered during drilling, the well
encountered approximately 100 net feet of apparent pay in five Bossier sands.
Gastar is in the process of installing production casing to total depth and
will then begin initial completion and testing of the Bossier pay zones. The
initial completion activities are expected to take approximately 30 days and,
if successful, initial natural gas sales are expected shortly thereafter.
Gastar has a 67% after casing point ("ACP") working interest with Chesapeake
Energy Corporation (NYSE: CHK) owning the remaining 33% ACP working interest.
Gastar is nearing total depth on the John Parker #3 well and currently is
running intermediate casing. The John Parker #3 well, a Knowles limestone
vertical well, is expected to reach a projected total depth of 13,850 feet in
approximately 10 days.
J. Russell Porter, Gastar's President and Chief Executive Officer, made
the following comments on these well results, "The Donelson #3 well
encountered several Bossier sands that are expected to result in higher
production rates and higher gross ultimate recoverable reserves than our
average Bossier well to date. Further, this well is located on the crest of
the Hilltop structure and is additional confirmation of the presence of a
series of deeper Bossier sands across our Hilltop structure acreage. We are
currently evaluating plans for either a single zone or multiple zone
completion within the Bossier formation."
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 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. Gastar's CBM activities are conducted within
the Powder River Basin of Wyoming and upon the approximate 3.0 million acres
controlled by Gastar and its joint development partners in Australia's
Gunnedah Basin (PEL 238) located in New South Wales and the Gippsland Basin
located in Victoria.
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 natural gas and oil wells, including risks of fire, explosion, blowouts,
pipe failure, casing collapse, unusual or unexpected formation pressures,
environmental hazards, and other operating and production risks inherent in
the natural gas and oil 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
natural gas and oil 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 natural gas and oil prices and other risk
factors described in the Company's Annual Report on Form 10-K, as filed on
March 27, 2007 with the SEC at www.sec.gov and on the System for Electronic
Document Analysis and Retrieval (SEDAR) at www.sedar.com.
The American Stock Exchange and the Toronto Stock Exchange have not
reviewed and do not accept responsibility for the adequacy or accuracy of this
For further information:
For further information: Gastar Exploration Ltd., Houston J. Russell
Porter, 713-739-1800 Fax: 713-739-0458 email@example.com or Michael A.
Gerlich, 713-739-1800 firstname.lastname@example.org www.gastar.com