Gastar has been informed by Rex Energy, the operator of the Grosick wells located in Butler County, Pennsylvania, that three of the seven wells have been fracture stimulated and have been on production since December 1, 2011. Rex is currently installing tubing in the wells, and we expect information on gas sales rates to be available within the next 30 days. Gastar owns a 19.0% working interest (15.06% net revenue interest) in the Grosick wells.
J. Russell Porter, Gastar's President and CEO, commented: "We are pleased with the early production rates from the Marcellus shale wells we have put on sales so far this year and expect them to generate excellent rates of return due to the attractive NGL and condensate yields realized in Marshall County, West Virginia. We plan to bring on a number of wells over the next several months as we continue to develop these assets and grow production. We also expect the issues with high gathering system pressures to be minimized as additional compression is installed on the system in the middle of the first quarter of 2012. We are finalizing plans for an active 2012 Marcellus drilling program consisting of at least 24 operated horizontal wells in Marshall County."
About Gastar Exploration
Gastar Exploration Ltd. is an independent company engaged in the exploration, development and production of natural gas and oil in the United States. Our principal business activities include the identification, acquisition, and subsequent exploration and development of natural gas and oil properties with an emphasis on prospective deep structures identified through seismic and other analytical techniques as well as unconventional natural gas reserves, such as shale resource plays. We are pursuing natural gas exploration in the Marcellus Shale in the Appalachian area of
West Virginia and central and southwestern
Pennsylvania and in the deep Bossier gas play in the Hilltop area of East Texas. We also conduct limited coal bed methane development activities within the Powder River Basin of
Wyoming and Montana. For more information, visit our web site at