The drilling of the Gastar LOR #1 well will complete FST's and Gastar's obligations to earn their respective 18.75% and 56.25% working interest in approximately 8,000 gross acres in the Hilltop area of East Texas including acreage that directly offsets the Gastar F-K #1 well. A private exploration and production company will have a 25% after payout back-in interest in the Gastar LOR #1 well. Gastar will hold an after payout working interest of 56.25% in the Gastar LOR #1 well.
J. Russell Porter, Gastar's President and CEO, commented on the announcement, "The Gastar LOR #1 well will test the Upper, Middle and Deep Bossier Sands that have been encountered in Gastar's two previous wells in an upthrown fault block and in a different depositional position. If the Gastar LOR #1 well is successful, it could result in another geophysically-controlled geologic structure in the Hilltop area, with gross estimated reserve potential of up to approximately 750 BCF of natural gas, which Gastar and its partners could develop. If the Gastar LOR #1 well is unsuccessful, it will have no bearing on the discovery that Gastar has made with the F-K and Cheney wells or the planned future drilling to delineate and develop that discovery. We are pleased to move forward with further exploration of the Hilltop structure located in an area where Gastar and its partners control approximately 30,000 gross acres of leases."
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 balanced strategy combining low-risk CBM development with select higher risk, deep natural gas exploration prospects. Gastar's CBM activities are conducted within the Powder River Basin of Wyoming and upon the approximate 4 million acres controlled by Gastar and its Joint Development partners in Australia's Gunnedah Basin, PEL 238 and Gastar's Gippsland Basins located in New South Wales and Victoria respectively. The Company also owns and controls acreage in the deep Trenton-Black River play in the Appalachian Basin.
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