Gastar Exploration Announces Initial Production From Multi-Lateral Production Pilot in Australia

    HOUSTON, June 18 /CNW/ -- Gastar Exploration Ltd. (NYSE Amex:   GST; TSX:
YGA) today announced that the aggregate rate of gas production from the
Bibblewindi multi-lateral production pilots in its coal seam gas project in
New South Wales, Australia has reached 250,000 standard cubic feet per day. 
Water production continues at approximately 3,500 to 4,000 barrels per day. 
Strong water flows, the precursor to strong gas flows, have confirmed the
anticipated widespread fracture network and high permeability of the Bohena
coal seam.  Full scale dewatering from the six production wells commenced in
early May 2009. It is expected that gas production rates will continue to
climb over coming months as dewatering continues.  Gastar holds a 35 percent
working interest in the project with the balance held by its joint development
operating partner, Eastern Star Gas (ASX:ESG and OTCQX: ESGLY).

    J. Russell Porter, Gastar's President and Chief Executive Officer, said,
"The excellent early performance of this production pilot is confirming our
high expectations for the project.  We believe this puts us on track to
achieve our reserves upgrade targets as well as move forward to project
commercialization and full-scale development.

    "In addition, the multi-lateral drilling design is proving to be a
success and we are now confident that we can comfortably drill laterals of
over 1 km in length.  We are also seeing clear pressure communication between
the lateral wells, which means the spacing between the laterals can be greatly
increased.  We anticipate a spacing of up to 1 km will be achievable,
increasing the total quantity of gas that will be produced from each well and
materially reducing gas production costs.

    "We are particularly pleased that gas production was immediate when
dewatering of the multi-lateral pilots commenced," added Mr. Porter.  "This
confirms the Bohena coal seam is fully saturated and based on results we have
seen so far, we expect the gas content to be approximately 15 standard cubic
metres (530 standard cubic feet) per ton of coal."

    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 deep natural gas exploration and
development with lower risk CBM and shale resource development.  The Company
owns and operates exploration and development acreage in the deep Bossier gas
play of East Texas and Marcellus Shale play in West Virginia and Pennsylvania.
 Gastar's CBM activities are conducted within the Powder River Basin of
Wyoming and concentrated on more than 6 million gross acres controlled by
Gastar and its joint development partner in Australia's Gunnedah Basin (PEL
238, PEL 433 and PEL 434) located in New South Wales.  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 Gastar 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
Gastar's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other
filings with the SEC at and on the System for Electronic Document
Analysis and Retrieval (SEDAR) at

    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. This news release discloses estimated "gas
content" that the SEC's guidelines would prohibit us from including in our
filings with the SEC.  Estimates of gas content are preliminary, do not
reflect estimates of recoverable reserves and by their nature are more
speculative than estimates of proved reserves under SEC definitions and

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

    Company Contact:
    Gastar Exploration Ltd.
    J. Russell Porter, Chief Executive Officer
    713-739-1800 /

    Investor Relations Counsel:
    Lisa Elliott / Anne Pearson
    DRG&E  : 713-529-6600 /


For further information:

For further information: J. Russell Porter, Chief Executive Officer of
Gastar Exploration Ltd., +1-713-739-1800,; or Investor
Relations Counsel, Lisa Elliott,, or Anne Pearson,, both of DRG&E, +1-713-529-6600, for Gastar Exploration
Ltd. Web Site:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890