Gastar Exploration Ltd; Agreement with Major Australian Gas Transmission Company

Gastar Exploration Ltd together with its joint venture partner Eastern Star Gas Limited have recently published a report saying that the two companies have entered into a Heads of Agreement (“HoA”) with the APA Group (“APA”), owner of the Central West and Moomba Sydney Gas Pipelines. Under the HoA, options for early delivery of coal seam gas from PEL 238 into the New South Wales (“NSW”) gas market are to be investigated.

have entered into a Heads of Agreement (“HoA”) with the APA Group (“APA”), owner of the Central West and Moomba Sydney Gas Pipelines. Under the HoA, options for early delivery of coal seam gas from PEL 238 into the New South Wales (“NSW”) gas market are to be investigated.

Gastar’s Chairman, President and CEO, J. Russell Porter, said that “Gastar and ESG plan to work with APA to develop arrangements that could potentially involve the construction of a new pipeline lateral to connect our PEL 238 Narrabri coal seam gas project into APA’s existing gas transmission pipeline system. By utilizing existing infrastructure, early market access could be secured, while complementing the later large-scale gas supply agreements anticipated by our existing MoU’s with Macquarie Generation and Babcock & Brown.”

Gastar Exploration Ltd. is an exploration and production company focused on finding and developing natural gas assets in North America and Australia. Gastar pursues a strategy combining select higher risk, deep natural gas exploration prospects with lower risk coal bed methane (CBM) development. Gastar owns and operates exploration and development acreage in the deep Bossier gas play of East Texas. Gastar’s CBM activities are conducted within the Powder River Basin of Wyoming and on approximately 6 million gross acres controlled by Gastar and its joint development partners in Australia’s Gunnedah Basin (PEL 238, PAL 2, PEL 433 and PEL 434) located in New South Wales.