Gastar Closes Common Share Private Offering

Gastar Exploration Ltd. announced that on November 17, 2006 it closed the previously announced private placement of 25,000,000 of its common shares at US$2.00 per share. The common shares were sold to institutional accredited investors in the United States, including Chesapeake Energy Corporation.

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 low-risk CBM development. The company owns and controls exploration and development acreage in the Deep Bossier gas play of East Texas and in the Appalachian Basin. 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.