Gastar Exploration has successful results from latest Bossier drilling activityadmin
Saturday, August 26th 2006
Gastar Exploration Ltd. has drilled the Wildman Trust #2 well located in Leon County, Texas to a total depth of 19,500 feet and, based on preliminary analysis of electric logs and gas shows encountered during drilling, the well encountered approximately 220 net feet of apparent pay with high indicated porosity in three separate middle Bossier sands and five separate lower Bossier sands. Gastar is in the process of installing a 5-inch string of casing to total depth and will begin initial completion and testing of the apparent lower Bossier pay zones. The completion activities are expected to take approximately 30 days and, if successful, initial production is expected by early-October 2006. Gastar has a 67% after casing point (“ACP”) working interest with Chesapeake Energy Corporation (NYSE:CHK) owning a 33% ACP working interest.
Gastar’s John Parker #2 well was spudded on August 19, 2006 and is currently drilling at an approximate depth of 3,000 feet. The well is expected to take approximately 100 days to reach an estimated total depth of 18,000 feet. This well is targeting the same middle Bossier sands that appear productive in Gastar’s John Parker #1 well. Gastar’s working interest in the John Parker #2 well is approximately 42% BCP (50% ACP) with Chesapeake Energy Corporation holding a 33% BCP working interest (25% ACP working interest) and an unrelated private exploration and production company holding the remaining 25% working interest.
Commenting on the announcement, J. Russell Porter, Gastar’s Chief Executive Officer, stated, “The Wildman Trust #2 well demonstrates the continuity of the lower Bossier sands across the Hilltop structure. This well also discovered a new series of middle Bossier sands that appear to be developing on the north and east side of the Hilltop structure. From a gross sand and reserve potential basis, this well appears to be the best well drilled to date by Gastar in the deep Bossier play. Coming on the heels of our most recent successful middle Bossier well, the John Parker #1, we believe this well is further confirmation of the tremendous asset value that Gastar is developing on its deep Bossier leasehold. Gastar plans on spudding an offset well to the Wildman Trust #2 within the next 7 to 10 days. That well, the Williams #1, will be positioned to test the same middle and lower Bossier sands discovered in the Wildman Trust #2 well.”