"Although this first well has yielded lower-than-expected initial oil production rates while it continues to produce back the completion fluid, we believe this new Mid-Continent oil play looks very prospective," Porter said. "The initial well encountered higher matrix porosity than previously seen in other recent wells, so recovery of completion fluids has taken longer than we originally planned. We are working with the operator to adjust the completion methods to improve potential IP rates as we drill the next wells in our planned program," Porter said.Oil and Gas Reserve Additions Gastar expects to report a 50% to 60% year-over-year increase in total proved reserve volumes for 2012 based on third-party evaluations of reserves in Appalachia, East Texas and the Mid-Continent. Gastar expects to report its complete reserve volume and valuation results for the year-end 2012 in mid-February 2013.
- Approximately 28% of the 2012 year-end total is expected to be attributable to NGLs, oil and condensate, and 72% to natural gas.
- Gastar expects its reserve replacement ratio for fiscal year 2012 to be approximately 500% of 2012 production.