Gastar Exploration, Inc. ("Gastar") (NYSE MKT: GST) today announced that the Mid-Con 6H well in its Hunton Limestone oil play reached a peak 24-hour gross initial production ("IP") rate of 1,442 barrels of oil equivalent ("BOE") per day and averaged 1,133 BOE per day (86% crude oil) over the last 10 days. The Mid-Con 6H well was completed in early October and reached peak production 45 days after flow-back operations commenced. The well was completed in the Hunton Limestone formation utilizing a 22-stage fracture stimulation over the well's lateral length of 4,200 feet. Gastar has a 50% working interest ("WI") (39% net revenue interest "NRI") in this non-operated horizontal well drilled in an area of mutual interest ("AMI") in Kingfisher County, Oklahoma.
J. Russell Porter, Gastar's President and CEO, commented "Working with the operator of our existing AMI, Husky Ventures, we have continued to refine the drilling and completion operations in the Hunton Limestone horizontal oil play, which we believe is contributing to higher IP rates and improved results. With the Mid-Con 6H results, three of our last five non-operated wells are producing or capable of producing at rates significantly above our internally generated type curve of 608 BOE per day (65% crude oil) and estimated ultimate per well recovery of 436,000 BOE. At an estimated drilling and completion cost of $5.8 million, the Mid-Con 6H well should generate an internal rate of return on such costs in excess of 100% at current NYMEX forward strip pricing."
Gastar's seventh non-operated Hunton well, the Mid-Con 7H (GST 48% WI, 38% NRI), has been completed and is in early stages of flow-back with extremely positive early indications. Gastar's first operated well in our Hunton Limestone oil play, the Burton 16-1H (GST 79% WI, 66% NRI), is currently being completed, with flow-back operations expected to commence by early December. Drilling operations began on Gastar's second operated well, the Townsend 6-1H (GST 100% WI, 80% NRI) on November 8, 2013, with flow back operations expected to commence by year-end.
About Gastar Exploration
Gastar Exploration, Inc. is an independent energy company engaged in the exploration, development and production of oil, natural gas, condensate and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves such as shale resource plays. Gastar is currently pursuing the development of liquids-rich natural gas in the Marcellus Shale in West Virginia and is also in the early stages of exploring and developing the Hunton Limestone horizontal oil play in Oklahoma.
