Exhibit 99.1
Gastar Exploration Announces Successful Williams #1 Completion and Updates
Other Bossier Completion Activities
HOUSTON--(BUSINESS WIRE)--Feb. 6, 2007--Gastar Exploration Ltd.
(AMEX:GST) (TSX:YGA) announced today that it has concluded initial
completion operations on two of three middle Bossier sands in the
Williams #1 well. The two completed middle Bossier zones have
individually tested at gross rates of 3.5 MMCFD and 4.0 MMCFD,
respectively. Gastar currently plans to fracture stimulate the
remaining middle Bossier sand by mid-February and after stabilizing
production from the last completion, the three middle Bossier zones
will be co-mingled.
Gastar is currently completing road repairs on the John Parker #2
well after a flood control water release damaged the lease road.
Repairs are expected to be completed in ten days and the final middle
Bossier zone in the John Parker #2 well fracture stimulated by late
February. The initial middle Bossier zone completed in the John Parker
#2 well tested at a gross rate of 3.5 MMCFD. The remaining middle
Bossier zone scheduled for completion exhibited even better log
characteristics than the initial completion. In addition, the John
Parker #2 contains upper Bossier formation and Knowles limestone
formations that have apparent pay based on drilling shows and log
analysis.
Gastar is also preparing to complete an additional middle Bossier
zone in the Wildman Trust #2 well. The Wildman Trust #2 well incurred
an apparent casing failure at approximately 16,900 feet while testing
a middle Bossier formation at pre-fracture stimulation rates estimated
to be between 3 and 5 MMCFD. As a result of the casing failure,
completion in the middle Bossier zone previously perforated and flowed
will not be possible; however, three additional middle Bossier zones
are expected to be completed in the Wildman Trust #2. The next
scheduled fracture stimulation on the Wildman Trust #2 is
mid-February.
Gastar is currently drilling three wells in its deep Bossier play.
The Wagner #1 well, a middle Bossier test located in the northwestern
corner of Gastar's leasehold, is drilling at approximately 13,300
feet. The Lone Oak Ranch #2 well, a Knowles, upper Bossier and middle
Bossier test, is drilling at approximately 13,800 feet and the
Donelson #3, a Pettet and lower Bossier test, is drilling at
approximately 10,300 feet. Gastar has a 50% after casing point working
interest in the Wagner #1 and Lone Oak Ranch #2 wells and a 67% after
casing point working interest in the Donelson #3 well.
Commenting on the announcements, J. Russell Porter, Gastar's
President & CEO, stated, "The successful completion of middle Bossier
zones in the Williams #1 and the testing of high pre-frac rates on the
Wildman Trust #2 are additional confirmation of the presence of middle
Bossier sands on a meaningful portion of Gastar's leasehold. The John
Parker #2 well was further confirmation of the presence of middle
Bossier sands on another significant portion of Gastar's acreage. The
completion and production delays we have suffered due to mechanical
issues and weather now appear to be behind us and we are looking
forward to meaningful increases in 2007 production rates in the
Hilltop area."
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 and in the deep Trenton-Black River play in the Appalachian
Basin. Gastar's CBM activities are conducted within the Powder River
Basin of Wyoming and upon the approximate 3.0 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.
Safe Harbor Statement and Disclaimer:
This Press Release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Act of 1934. A statement identified by the words
"expects", "projects", "plans", and certain of the other foregoing
statements may be deemed forward-looking statements. Although Gastar
believes that the expectations reflected in such forward-looking
statements are reasonable, these statements involve risks and
uncertainties that may cause actual future activities and results to
be materially different from those suggested or described in this
press release. These include risks inherent in the drilling of natural
gas and oil wells, including risks of fire, explosion, blowout, pipe
failure, casing collapse, unusual or unexpected formation pressures,
environmental hazards, and other operating and production risks
inherent in natural gas and oil drilling and production activities,
which may temporarily or permanently reduce production or cause
initial production or test results to not be indicative of future well
performance or delay the timing of sales or completion of drilling
operations; risks with respect to oil and natural gas prices, a
material decline in which could cause the Company to delay or suspend
planned drilling operations or reduce production levels; and risks
relating to the availability of capital to fund drilling operations
that can be adversely affected by adverse drilling results, production
declines and declines in natural gas and oil prices and other risk
factors described in the Company's Annual Report on Form 10-K, as
filed on March 31, 2006 with the United States Securities and Exchange
Commission at www.sec.gov and on the System for Electronic Document
Analysis and Retrieval (SEDAR) at www.sedar.com.
The American Stock Exchange and Toronto Stock Exchange have not
reviewed and do not accept responsibility for the adequacy or accuracy
of this release.
CONTACT: Gastar Exploration, Ltd., Houston
J. Russell Porter, 713-739-1800
Fax: 713-739-0458
rporter@gastar.com
www.gastar.com