Gastar Exploration and Eastern Star Gas Execute MOU With Babcock & Brown for Long Term Supply of Coal Bed Methane for Use in Electricity Generation

    HOUSTON, November 12 /CNW/ - Gastar Exploration Ltd. (AMEX:  GST) (TSX:YGA)
with joint venture partner Eastern Star Gas Limited (ASX: ESG) has entered
into a Memorandum of Understanding with Babcock & Brown ("Babcock & Brown
MOU") to supply gas from the PEL 238 and PEL 433 concessions for use in the
generation of electricity.

    The Babcock & Brown MOU envisions the supply of up to 38 BCF per year of
gas from the Gunnedah Gas Project (Gastar 35%, Eastern Star Gas 65%) for use
in a gas fueled power station to be developed by Babcock & Brown in northern
New South Wales, Australia. Gas sales under the anticipated agreements could
be expanded to meet requirements for power station developments at other

    J. Russell Porter, Gastar's Chairman, President and CEO, stated, "The
Babcock & Brown MOU represents another major step forward for the Gunnedah Gas
Project and the early commercialization of gas production on PEL 238, leading
in turn to significant regional benefits and the emergence of the Gunnedah
Basin Gas Project as New South Wales' major indigenous source of natural gas.

    The PEL 238 and PEL 433 projects are well suited to supply gas to meet
market requirements that are growing rapidly in New South Wales. The Babcock &
Brown MOU provides that power station and gas field development will proceed
in parallel," added Porter.

    Gastar and Eastern Star Gas are in the process of commercializing the
Gunnedah Basin Gas Project, located within Petroleum Exploration License
("PEL") 238, through the successful implementation of the Bibblewindi and the
Bohena Production Pilots, both of which are located within the Bohena Project

    About Gastar Exploration

    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 lower risk coal bed methane (CBM) development. The
Company owns and operates 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 on approximately 7 million gross acres
controlled by Gastar and its joint development partners in Australia's
Gunnedah Basin (PEL 238, PAL 2, PEL 433 and PEL 434) located in New South
Wales, and the Gippsland Basin (EL 4416), located in Victoria. For more
information, visit our web site at

    Safe Harbor Statement and Disclaimer

    This news 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 news 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 and on the System for Electronic
Document Analysis and Retrieval (SEDAR) at

    The American Stock Exchange and the Toronto Stock Exchange have not
reviewed and do not accept responsibility for the adequacy or accuracy of this
news release.

    The SEC has generally permitted oil and gas companies, in their filings
with the SEC, to disclose only proved reserves that, under SEC definitions and
guidelines, a company has demonstrated by actual production or conclusive
formation tests to be economically and legally producible under existing
economic and operating conditions. We use the terms in this announcement such
as "2P" or "probable" reserves, or other descriptions of volumes of
hydrocarbons that the SEC's guidelines would prohibit us from including in our
filings with the SEC. We also have included in this announcement information
concerning reserves attributed to our Australian coal bed methane pilot
program that are categorized as "proved" under the definitions and guidelines
set by the Society of Petroleum Engineers that would not be so categorized
under SEC definitions and guidelines. All of these volumes and estimates are
by their nature more speculative than estimates of proved reserves under SEC
definitions and guidelines and accordingly are subject to substantially
greater risk of being actually realized by us.

For further information:

For further information: Gastar Exploration Ltd. President and CEO J.
Russell Porter, 713-739-1800 or Investor Relations Counsel:
DRG&E Lisa Elliott or Anne Pearson, 713-529-6600 or

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