MT. PLEASANT, Mich., May 9, 2002 (PRIMEZONE) -- Gastar Exploration, Ltd. (TSE:YGA) is pleased to announce that it has increased its working interest ownership in its existing East Texas Bossier property.
Gastar has acquired an additional 22.5% working interest in approximately 9,000 acres located in Leon County, Texas. The acquisition of these additional interests increases Gastar's total working interest to 72.5% within the approximate 9,000-acre block. The acquisition of the additional interest was from two unrelated parties for cash under undisclosed terms. No additional shares of Gastar's common stock or any other securities will be issued as a result of this transaction.
Gastar is currently participating with Anadarko Petroleum Company in a deep Bossier Sand well on acreage located immediately adjacent to the 9,000-acre block discussed above. That well, the Belin Trust A-1 well, has been drilled to a total depth of 20,946 feet and is currently being prepared for completion operations. Gastar owns an 11.82% working interest in the approximately 4,100-acre lease block, jointly owned with Anadarko Petroleum Company and a small private company, containing the Belin Trust A-1 well.
Commenting on the acquisition J. Russell Porter, Gastar's Chief Operating Officer, said: "We have increased our interests in this project area based upon the encouraging results seen while participating in the drilling of the Belin Trust A-1 well. As the Belin well is completed and tested, we expect to begin exploration on the adjacent 9,000-acre block controlled and operated by Gastar. We believe that the acquisition of these additional interests should result in substantial additional natural gas reserves for Gastar."
Gastar Exploration is an exploration and production company focused on finding and developing natural gas in North America and Australia. The Company pursues a balanced strategy combining low-risk CBM development with select higher risk, deep natural gas exploration prospects. Gastar's CBM activities are conducted within the Powder River Basin of Wyoming and upon the approximate 4 million acres controlled by Gastar in Australia's Gunnedah and Gippsland Basins located in New South Wales and Victoria respectively. The Company also owns prospective acreage in the deep Temblor gas play in the East Lost Hills field within the San Joaquin Basin of California and in the Trenton-Black River gas play in the Appalachian Basin.
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 17, 2001, 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.