Gastar Exploration Ltd. (GST) is “One to Watch”

Gastar Exploration Ltd. is an exploration and production company that focuses its efforts on discovering and developing natural gas assets in North America. Pursuing a strategy that combines deep natural gas exploration and development with lower risk Coalbed methane (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.

The deep Bossier Sands in East Texas is an unconventional play that is being developed by some of the largest and most active operators in the U.S. Bossier wells are characterized by high initial production, attractive estimated ultimate recoverables (EURs) and long-lived reserves from multiple pay zones. Gastar has approximately 33,400 gross (19,200 net) acres in the Hilltop area of Leon and Robertson counties, all of which are 100% operated by the company.

In the Appalachian Basin of the Northeastern United States, Gastar holds a total of approximately 79,700 net acres in northern West Virginia and southwestern Pennsylvania near acreage of some of the most active participants in the Marcellus Shale play. The Company’s leases are strategically located in areas where it believes the Marcellus Shale is over-pressured and where operational issues such as water sources, water disposal and gas transportation will be easier to manage than in other parts of the play.

Gastar’s stake in CBM production comes from a 40% average working interest in approximately 43,400 gross (19,600 net) acres in the Powder River Basin of Wyoming. Main areas of activity include the Squaw Creek, Ring of Fire and adjacent fields, which are located north of Gillette in an active drilling area. Gastar currently has over 500 gross coalbed methane wells in the Powder River Basin. The majority of the remaining working interest is owned by the operator, Pinnacle Gas Resources, Inc.

The company aims to increase shareholder value by delivering sustainable reserves growth and improved operating results from existing assets. The company implements its business strategy by continually engaging in exploration activities with a focus on areas that it believes are prospective for natural gas and oil with relatively high liquids content, actively managing its domestic drilling program and effectively utilizing its team’s  technological expertise.

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