Gastar Exploration Ltd. provides an update on recent drilling operations in East Texas.

Gastar has drilled the LOR #6 well to a total depth of 16,475 feet and, based on drilling and log analysis, has encountered two productive middle Bossier sands. The well was completed in the deepest pay zone and placed on production on June 21, at a gross sales rate of 17.5 MMcfd with flowing casing pressure of 9,200 psi. The well will be evaluated to determine the optimal time to complete the second middle Bossier zone and co-mingle the production. Gastar achieved a significant cost breakthrough with the LOR #6 by drilling and completing the well through the first stimulation for approximately $8.4 million compared to our assumed average well cost of $12 million for Bossier wells. Gastar has a 50% working interest before payout (approximately 37.5% net revenue interest) in the LOR #6 well.

Gastar has also sidetracked and completed the LOR #4, a horizontal Knowles Limestone well, which is producing at a stabilized gross sales rate of 2.2 MMcfd. Gastar has a 50.0% working interest (approximately 37.5% net revenue interest) in the LOR #4 well.

Gastar is drilling the LOR #5, a horizontal Knowles Limestone well that is currently at 12,300 feet and is expected to reach total depth in approximately 30 days.

J. Russell Porter, Gastar's President & CEO, stated, "These two recently completed East Texas wells continue Gastar's string of successful Bossier and Knowles wells and are evidence that we continue to build asset value through exploitation of our East Texas asset base. The second middle Bossier zone in the LOR #6 well has similar porosity and resistivity to the zone just completed and will hopefully also produce at a significant initial rate. By lowering the cost to drill middle Bossier targets, as we did in the LOR #6, we are improving the economics related to these activities and creating additional opportunities for Gastar on our East Texas acreage position."

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