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Gastar Exploration (GST)

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Last Post: 9/7/2018 10:25:38 AM - Followers: 38 - Board type: Free - Posts Today: 0

 Gastar Exploration, Ltd.
1331 Lamar Street
Suite 650
Houston, TX 77010
Phone: 713-739-1800
Fax: 713-739-0458
Website: http://www.gastar.com                                

Gastar Exploration Ltd. (NYSE MKT: GST) is engaged in the exploration, development and production of natural gas, natural gas liquids, condensate and oil in the United States. Our current focus is on the Marcellus Shale play, where we are in the early stages of developing and producing natural gas reserves that also yield significant quantities of condensate and high-value natural gas liquids (NGLs). Our legacy assets are located in the deep Bossier natural gas play in East Texas, where we currently have gas production from about 25 wells and oil production from four others that are testing shallower oil plays.

Gastar Exploration Ltd. engages in the acquisition, exploration, development, and production of natural gas and oil in the United States. It focuses on deep structures identified through seismic and other analytical techniques, as well as unconventional natural gas reserves, such as shale resource plays. As of December 31, 2010, the company held leases covering approximately 33,400 gross acres in the deep Bossier gas play in the Hilltop area of east Texas; and had approximately 87,700 gross acres in the Marcellus Shale in the Appalachian area of West Virginia, and central and southwestern Pennsylvania. It also owned an average non-operated working interest of approximately 40% in approximately 43,400 gross acres within the Powder River Basin of Wyoming and Montana. Gastar Exploration Ltd. was founded in 1987 and is based in Houston, Texas.

Marcellus Shale


Gastar is actively developing and producing reserves in the Marcellus Shale play in the Appalachian Basin, which is one of the hottest E&P plays in the U.S. Approximately two-thirds of Gastar's total net production currently comes from our Marcellus Shale wells. Gastar's focus in the Marcellus Shale is in northern West Virginia where the Marcellus contains high-Btu-content natural gas that also yields significant quantities of condensate and high-value natural gas liquids. Currently, over a third of Gastar's production from this area is condensate and NGLs - making well economics extremely attractive. Gastar expects to have a total of 38 gross operated wells and 11 gross non-operated wells on production in the Marcellus Shale by year-end 2012.

Gastar's current focus of activity in the Marcellus Shale play is in northern West Virginia. The economics of these wells is enhanced by the high-Btu content of the natural gas, which yields significant quantities of condensate and high-value natural gas liquids.
Click here for larger image.

Gastar holds approximately 75,500 net acres in northern West Virginia and southwestern Pennsylvania near acreage held by some of the most active participants in the play. Gastar's leases are strategically located in areas where it is believed that the Marcellus Shale is over-pressured and where operational issues such as water sources, water disposal and gas transportation have proven to be easier to manage than in other parts of the play. Gastar's contiguous acreage position enables it to drill long laterals (an average of approximately 5,000 feet in length), and perform pad drilling operations and conduct large multi-stage fracture stimulations that improve well performance and economics.

Acreage in Marshall and Wetzel counties in West Virginia is the current focus of Gastar's activities and capital budget, with over 100 additional well locations identified for near-term drilling.

Gastar is drilling multiple Marcellus Shale horizontal wells in northern West Virginia from drilling pads similar to those shown above.

Gastar is developing the West Virginia acreage in partnership with Atinum Partners of South Korea, a leading private investment firm. Gastar completed a joint venture with Atinum in November 2010 which covers 42,200 net joint venture acres (21,100 net acres to Gastar) in West Virginia and Pennsylvania.

Outside the Atinum partnership, Gastar also holds 54,400 net acres primarily in Preston, Tucker and Pendleton counties in West Virginia in a dry-gas area referred to as our Marcellus East acreage. Due to current low natural gas prices, Gastar is deferring development of the Marcellus East acreage until prices improve.

East Texas



Gastar controls approximately 33,500 gross (17,100 net) acres in the Hilltop area of Leon and Robertson counties in East Texas, located about halfway between Dallas and Houston. The acreage is 100% operated by Gastar.

The deep Bossier sands in East Texas, a natural gas play, is a significant source of Gastar's current natural gas production. Gastar believes that its East Texas acreage holds strong potential for substantial additional natural gas in a higher commodity price environment and potential oil reserves in several shallower formations.

The Bossier Sands Gas Play

Gastar participated in its first Bossier well with Anadarko Petroleum in 2001 and completed its first operated well in the play in 2004. To date, Gastar has successfully completed 26 upper, middle and lower Bossier natural gas wells.

Bossier wells are characterized by high initial production, attractive estimated ultimate recoverables (EURs) and long-lived reserves from multiple pay zones at depths ranging from 16,500 to 19,500 feet. The last eight wells Gastar drilled in the Bossier sands had average initial production of approximately 16.5 MMcfe per day and average EURs of 11.8 Bcf of gas reserves.


Gastar has a multi-year drilling inventory of natural gas wells in the Bossier play, but due to the relatively low Btu content of the gas and continued low natural gas prices, we are deferring additional drilling in this area until higher natural gas prices provide internal rates of return that would be competitive with our Marcellus and Mid-Continent projects.

Glen Rose and Eagle Ford/Woodbine Shale Oil Potential

In addition to its Bossier natural gas activity, Gastar has performed initial testing of shallower oil potential in the Eagle Ford/Woodbine Shale and Glen Rose Limestone, both of which lie above the Bossier at depths of about 6,500 to 14,000 feet.

Results of these drilling tests have been inconclusive to date, and Gastar has opted to monitor the activities and results of other producers who are also testing these same oil-bearing formations immediately to the east and south of its acreage before committing additional capital to further drilling tests.

Mid-Continent Oil Prospect


Gastar has acquired an initial lease position in a new oil play located in the Mid-Continent region of the United States with the objective of developing a program focused on low-cost, repeatable horizontal development of conventional oil-bearing formations. Along with a partner, we currently hold approximately 36,700 net leasehold acres (18,350 net acres to Gastar) in three adjoining areas of mutual interest.

The initial plan is to drill and complete three gross (1.5 net) horizontal wells by early 2013 to test the potential of the area. Gastar will pay 62.5% of the first four wells' gross drilling and completion costs and 56.25% of the next four wells' gross drilling and completion costs to earn a 50% working interest. For all additional wells beyond the first eight in a prospect area, we are responsible for paying only the drilling and completion costs associated with our 50% working interest (approximate net revenue interest of 39%). We are responsible for all leasing and permitting activities. Gastar's first non-operated well in the Mid-Continent began flow-back operations on October 5, 2012. Based on a recent 30 day average, the well is producing at a stabilized daily gross rate of approximately 84 barrels of oil, 428 barrels of completion fluids and 94 Mcf of 1,496 Btu natural gas, yielding approximately 105 barrels of oil equivalent per day after processing. To date, approximately 19% of the completion fluids from the 13-stage fracture stimulation have been recovered. Drilling and completion costs on the well to date are approximately $4.8 gross ($3.0 net) million.

The drilling of the second of the three planned wells has commenced. This well has reached its vertical depth of approximately 7,900 feet, and intermediate casing has been set. Drilling of the approximately 4,400 foot horizontal lateral is in progress (as of mid-December 2012), and the well is anticipated to be on production by late January 2013. Drilling and completion costs of this well are estimated to be $4.3 gross ($2.7 net) million. The third Mid-Continent well is scheduled to commence drilling early January 2013.

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#674   GSTC Upset Wookie 09/07/18 10:12:42 AM
#673   What is the ticker of GST now that Stock Steward 09/07/18 09:29:15 AM
#672   Now the fun begins!!!! Hang on for a micromillionaire 09/06/18 05:20:06 PM
#671   Possible BO in works as well nickster616 09/06/18 04:35:06 PM
#670   GST immediately suspended and will appear on OTC michaeldouglas 09/06/18 01:34:57 PM
#669   HALTED - Per pending news. Coppermine 09/06/18 12:24:50 PM
#668   For a company with such a large market Denty 08/31/18 01:01:33 AM
#667   Gastar Exploration Announces Notification of NYSE American Continued swanlinbar 08/30/18 08:14:39 AM
#666   Working on a new low, Watch out.. scary larry 08/23/18 11:38:58 AM
#665   gst is ready to rocket! xray168 08/20/18 08:00:46 PM
#664   this things gonna pop soon into the high stockmofia 08/17/18 12:15:16 PM
#663   hopefully will get an offer soon .20-.30 stockmofia 08/17/18 12:09:15 PM
#662   the little oil and gas co are consolidating stockmofia 08/17/18 12:06:06 PM
#661   possible merger in the works. stockmofia 08/17/18 12:02:49 PM
#660   * * $GST Video Chart 08-13-18 * * ClayTrader 08/13/18 04:15:02 PM
#659   * * $GST Video Chart 08-10-18 * * ClayTrader 08/10/18 06:16:36 PM
#658   With that question my advice to you is Sirpeter 08/10/18 12:58:16 PM
#657   Wow... looks like GST is getting blasted into Homer Simpson 7G 08/10/18 09:15:36 AM
#656   Confident in buyout or merger.. Company presentation seems #1pennytrader 08/10/18 06:04:55 AM
#655   Wow... And I was watching for an entry. Bye! 420man 08/09/18 07:13:16 PM
#654   Something tells me they will look for a Homer Simpson 7G 08/09/18 06:34:58 PM
#653   Should bounce nice. I know that is RJ Trotts 08/09/18 05:20:09 PM
#652   Panic sellers... Bankruptcy is off the table for #1pennytrader 08/09/18 05:19:00 PM
#651   See you guys later. CHuckem 08/09/18 04:49:53 PM
#650   Consider that getting into GST is like getting SaltyMutt 08/09/18 09:44:59 AM
#649   * * $GST Video Chart 08-08-18 * * ClayTrader 08/08/18 05:45:09 PM
#648   Real honest question here. I'm big minus on laplova 08/08/18 04:34:35 PM
#647   Apologies for the late reply, week to week DFRANK1970 08/08/18 04:23:28 PM
#646   Realistically what do you guys see this tomorrow? laplova 08/08/18 04:16:54 PM
#645   Interesting finish. Some jumping in just in case CHuckem 08/08/18 04:13:10 PM
#644   Read some analysis articles about GST. I can Homer Simpson 7G 08/08/18 12:17:28 PM
#643   I would say that its a coin flip SaltyMutt 08/08/18 10:00:52 AM
#642   That’s not very convincing haha I am thinking Trader_415 08/08/18 09:47:13 AM
#641   I've been watching and trading this stock for SaltyMutt 08/08/18 09:41:49 AM
#640   Why do you think this will hit .50 laplova 08/07/18 05:35:29 PM
#639   If, come Thursday afternoon, it's not announced that SaltyMutt 08/07/18 03:41:59 PM
#638   If it's that bad according to the 6 Homer Simpson 7G 08/07/18 01:14:19 PM
#637   GST Here's what to expect from Gastar Exploration's earnings report SaltyMutt 08/07/18 01:05:38 PM
#636   Well, things do indeed look rather gloomy for SaltyMutt 08/06/18 11:11:41 PM
#635   Why do you say that? I just read Trader_415 08/06/18 10:36:24 PM
#634   I'm thinking that Thursday may not be as SaltyMutt 08/06/18 09:23:39 PM
#633   I’m holding for news. Anything but BK and CHuckem 08/06/18 07:43:19 PM
#632   Thursday sure will be interesting after the market Homer Simpson 7G 08/06/18 06:42:14 PM
#631   5 day chart has RSI reset, MACD turning Upset Wookie 08/06/18 02:09:49 PM
#630   why do you think it will move above laplova 08/06/18 10:15:40 AM
#629   Poverty, misery, and woe!!!!!!!!!! LOL Just kidding. I SaltyMutt 08/06/18 08:38:50 AM
#628   Better ER than expected. $60-70/bbl oil prices vs. 0210 08/04/18 07:29:51 PM
#627   do you really think this can go to laplova 08/03/18 09:18:30 PM
#626   After doing some diligence. This company actually owns locklegs18 08/03/18 02:22:57 PM
#625   Realistically? .21 to .34 Earnings is key. locklegs18 08/03/18 02:19:05 PM
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