Gastar Reports Middle Bossier Success
Gastar Exploration Ltd. said that it has drilled the Williams #1 well located in Leon County, Texas to a total depth of 19,650 feet. Based on preliminary analysis of electric logs and gas shows during drilling, the well encountered approximately 32 net feet of apparent pay in three middle Bossier sands.
Gastar is in the process of installing a 5-inch string of casing to 17,200 feet and will then begin initial completion and testing of the middle Bossier pay zones. The completion activities are expected to take approximately 30 days and, if successful, initial production is expected by mid-February 2007. Gastar has a 67% after casing point ("ACP") working interest with Chesapeake Energy Corporation (NYSE:CHK) owning the remaining 33% ACP working interest.
Gastar is also continuing completion operations on the Wildman Trust #2 and John Parker #2 wells. The Wildman Trust #2 well is expected to be fracture stimulated in the first of three middle Bossier zones within the next three weeks. The John Parker #2 well is scheduled to be fracture stimulated in late January in an additional middle Bossier zone after a successful frac and production test in a middle Bossier formation that stabilized at a gross rate of approximately 3 MMcfd.
Gastar is currently drilling the Lone Oak Ranch #2 well (the "LOR #2") at approximately 12,200 feet. The LOR #2 well will target the Knowles Limestone, the upper Bossier and the middle Bossier formations. Gastar is also drilling the Wagner #1 well, a middle Bossier test, at approximately 8,800 feet. Gastar expects to spud the Donelson #3 well to test the Pettet and lower Bossier formations within the next two weeks.
Commenting on the announcement, J. Russell Porter, Gastar's Chief Executive Officer, stated, "The Williams #1 appears to be an average middle Bossier well that fits Gastar's economic model. Assuming the successful completion of the Williams #1 well, along with the Wildman Trust #2 and John Parker #2 wells, Gastar expects to significantly increase its production from the deep Bossier play during the first quarter of 2007."
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 select higher risk, deep
natural gas exploration prospects with lower risk coal bed methane (CBM)
development. The Company owns and controls exploration and development acreage
in the Deep Bossier gas play of East Texas. Gastar's CBM activities are
conducted within the Powder River Basin of Wyoming and upon the approximate
3.0 million gross acres controlled by Gastar and its joint development
partners in Australia's Gunnedah Basin (PEL 238) and Gippsland Basin (EL 4416)
located in New South Wales and Victoria, respectively.
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