Gastar Exploration, Ltd. Announces Up to $40 Million Private Placement Offering of Working Interest in Four Well Deep Bossier Drilling Program

Mt. Pleasant, Michigan, UNITED STATES


MT. PLEASANT, Mich., April 23, 2002 (PRIMEZONE) -- Gastar Exploration, Ltd. (TSE:YGA) today announced that, subject to regulatory approval, it will be offering working interests in a four well deep Bossier drilling program on the Company's East Texas Bossier natural gas assets. This arms length offering will be conducted through a private placement offering with the maximum offering being US$40,000,000 (CDN$62,892,000). In connection with the financing, a maximum of 20,000,000 warrants will be issued to subscribers on a pro-rata basis, with each warrant having a three year term entitling the holder to acquire one common share of Gastar during the 24th to 36th months from the date of issuance, at an exercise price equal to the five (5) day weighted average trading price of Gastar's common stock immediately prior to the initial investment. The working interests will bear interest at 10% per annum for the first 12 months following the purchase of the working interests.

The proceeds of the private placement will be used to partially fund the drilling of four Bossier wells and for general corporate purposes. Commissions payable on the private placement of working interests will be made in accordance with applicable regulatory policies and regulations.

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 owns prospective acreage in the Bossier Sand gas play of East Texas, the deep Trenton-Black River play in the Appalachian Basin and in the deep Temblor gas play in the East Lost Hills field within the San Joaquin Basin of California.

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.


        

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