MT. PLEASANT, Mich., May 5, 2003 (PRIMEZONE) -- Gastar Exploration, Ltd. (TSX Venture Exchange:YGA) announced today the acceptance of an offer from an undisclosed purchaser for the sale of Gastar's interest in the Culp Draw and Table Mountain areas of the Powder River Basin. Gastar owns approximately 3,033 net acres of federal leases in these areas. The terms of the offer will result in the payment to Gastar of approximately $2,400,000 in cash and Gastar will retain a small overriding royalty interest. The offer is dependent upon the purchaser's review of title information as well as the execution of a mutually acceptable Purchase and Sale Agreement. The transaction is expected to close in approximately 45 days.
Commenting on the sale, J. Russell Porter, Gastar's COO, said, "We are pleased to be able to monetize these partial working interest leases. Along with the funds from our previously announced Powder River Basin joint venture, this transaction makes additional funds available for our planned activities including our projects in the Deep Bossier Sands play in East Texas, the deep Trenton-Black River and Devonian Shale plays in West Virginia and our Australian CBM plays in New South Wales (PEL 238) and Victoria (Gippsland Basin)."
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 Deep Bossier Sand gas play of East Texas, in the deep Trenton -- Black River play of Appalachia 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 2002, 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.
Contact Information: Gastar Exploration, Ltd. (TSX Venture Exchange:YGA) 2480 West Campus Drive, Bldg C Mt. Pleasant, MI 48858 (989) 773-7050 FAX (989) 773-0006 Attention J. Russell Porter or Victor W. Hughes, Jr. E-Mail: rporter@gastar.com or vhughes@gastar.com Web Site:www.gastar.com