MT. PLEASANT, Mich., Feb. 10, 2003 (PRIMEZONE) -- Gastar Exploration, Ltd. (TSE:YGA) is pleased to provide the following operational update.
As previously announced, Gastar is an 11.82% working interest owner in the Belin Trust A-1 well and in 4,100 acres jointly controlled with Anadarko Petroleum (NYSE:APC) surrounding that well. The Belin Trust well, operated by APC, was drilled to a total depth of 20,946 feet. The well encountered several potential zones that Gastar and its partners believe are prospective for natural gas production in the Deep Bossier, Cotton Valley and Travis Peak formations. In January 2003, Gastar acquired from APC its rights to the Belin Trust A-1 well bore and APC's interest in the zones encountered in the well bore and the surrounding 704 acre drilling unit, subject to an ORRI, from 17,500 feet in depth to the total depth of the well. First Source Texas, Inc., a working interest owner and an affiliate of Geostar Corporation, has since been named the Operator of Record for the well. Gastar has increased its working interest to 70.65% in the zones below 17,500 feet. Gastar also holds an approximate 72.5% working interest position in an adjacent 9,000-acre leaseblock.
After taking over operations of the Belin Trust A-1 well, Gastar conducted testing of the "C" zone in the Deep Bossier section (approximately 18,512 feet to 18,610 feet) and was encouraged by the initial test results. After the initial tests, a fracture stimulation technique was performed. The upper "C" zone (18,512' to 18,524') tested pipeline quality natural gas after a break-down, or mini-frac procedure at spot rates of up to 500 Mcf per day, with projected post-frac estimated rates of 2,500 to 5,000 Mcf per day. After these initial encouraging tests results, the well began producing significant amounts of formation fluids from deeper zones that were tested earlier, as a result of what appears to be an inadequate cement job, or other down-hole mechanical problems related to the prior testing in the deeper Bossier zones. Due to these well problems, Gastar has decided to attempt further remedial procedures to potentially reduce, or eliminate the influx of formation fluids that appears to be coming from the lower, previously tested Bossier formations. Gastar and its partners are also planning to test, in addition to the Deep Bossier "C" section, the Upper Cotton Valley and Travis Peak formations within the Belin Trust well bore.
Due the encouraging information already obtained from the activities on the Belin Trust A-1 well and the results of earlier wells drilled in the area, Gastar is currently planning the drilling of another Deep Bossier well to test a series of seismically controlled, potentially thicker and higher quality Deep Bossier reservoirs than those that were encountered in the Belin Trust A-1 well.
Gastar's COO, J. Russell Porter, commented, "Gastar's geo-technical staff believes that the results achieved to-date from the Belin Trust well are very encouraging since the existence of reservoir quality sands and pipeline quality gas have been confirmed within the deep Bossier depositional setting. Based on Gastar's interpretation of the geologic model, and our seismic data, we believe that thicker and higher quality reservoir formations can be found shallower within the Deep Bossier section on Gastar's leasehold. The likelihood that these potential reservoirs cover a large portion of Gastar's leasehold is very meaningful. We are looking forward to learning more from the data that will be forth coming."
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. Although Gastar believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals and assumptions will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements contained herein, include, among others, the success and timing of certain projects, the success in drilling and producing oil and gas properties, changes in commodity prices for oil and natural gas, operating risks, the uncertainty associated with estimating underground quantities of crude oil and natural gas reserves and other risk factors as described in the Company's Annual Information Form filed as of May 2002, on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.