Gastar updated production information on its first two Marcellus Shale horizontal wells and corrects previously provided initial sales results. The Company's first two Marcellus wells, the Wengerd 1H and 7H wells, produced at an average combined gross sales rate of 7.1 million cubic feet per day ("MMcf/d") of liquids rich (1285 Btu/MCF) natural gas and 176 barrels of condensate per day ("BCPD") for the first 30 days of production, which commenced on August 11th. These wells are producing through 5-1/2 inch production casing at approximately 1,250 psi flowing casing pressure. Gastar owns a 44.5% working interest and 37.5% net revenue interest in these wells.
On July 27, 2011 Gastar announced that these wells tested at a combined gross production rate of 15.5 MMcf/d and 1,100 BCPD. We provided further additional information that the wells had a combined initial gross sales rate of 14.0 MMCFE per day (9.7 MMcf/d and 720 BCPD). Subsequently, we have determined that the condensate sales rate was overstated due to excess high Btu gas being produced through the condensate line and incorrectly metered as condensate instead of natural gas. Correcting for the metering error, the combined peak initial gross sales rate for the two wells was 13.6 MMCFE per day (11.1 MMcf/d and 410 BCPD).
J. Russell Porter, Gastar's President and CEO, issued the following statement, "We are pleased with the production rates of these wells and expect them to generate excellent rates of return. These production volumes are in line with our independent reservoir engineer's initial proved reserve estimates of 8.3 Bcfe per well. We expect to bring on four additional horizontal Marcellus wells at the end of October and at least three more prior to year end 2011."
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