Gastar Exploration: Hot property
It’s a beautiful day in Gastar Exploration Ltd.’s (AMEX:GST) neighborhood. The post-person delivers, dogs bark, the sun sparkles and the coal beds are full of methane. Not only that, the next-door neighbors find a fortune under their backyard patio. Like the realtors say: location, location, location.
Gastar, a natural gas explorer and producer operating onshore in the United States and Australia, has its share of prime real estate. Its domestic drilling focus is on exploiting its multi-year inventory of locations in the Deep Bossier sands and Knowles Limestone plays in the Hilltop area of East Texas. The company also is continuing to exploit its coal bed methane, or CBM, assets in the Powder River Basin of Wyoming and Montana. In Australia, it is developing more than 2.9 million net acres of CBM rights in New South Wales and Victoria, Australia.
Gastar’s plan is to generate high initial production and strong cash flow from wells in East Texas and to gain significant reserves through the development of its Australia resources. Its core East Texas properties included 18 producing wells at the end of 2007, which the company plans to grow to 25 this year. In key Deep Bossier, Gastar had a total of 16,300 net acres at the end of December 2007.
East Texas holds a cache of worldly goods, a treasure of oil and gas resources that big-time rollers are paying big bucks to buy. Operators are swarming around the Deep Bossier hive, buzzing about its long-lived resources, high initial production and favorable decline rates.
Last November, EnCana Corp. (NYSE:ECA), with market capitalization of $53 billion, paid $2.55 billion to acquire all of the Deep Bossier natural gas and land interests of privately owned Leor Energy in Texas. EnCana now owns 100% of the Amoruso Field, which, in 24 months, went from zero production to more than 215 million gross cubic feet per day.
Let the wealth spread beyond the Amoruso Field to Gastar’s property. “Gastar’s neighbor in the Deep Bossier has seen huge wells, giving us confidence that even bigger wells for Gastar are around the corner,” said analyst Neil Dingmann . . .
Gastar, a natural gas explorer and producer operating onshore in the United States and Australia, has its share of prime real estate. Its domestic drilling focus is on exploiting its multi-year inventory of locations in the Deep Bossier sands and Knowles Limestone plays in the Hilltop area of East Texas. The company also is continuing to exploit its coal bed methane, or CBM, assets in the Powder River Basin of Wyoming and Montana. In Australia, it is developing more than 2.9 million net acres of CBM rights in New South Wales and Victoria, Australia.
Gastar’s plan is to generate high initial production and strong cash flow from wells in East Texas and to gain significant reserves through the development of its Australia resources. Its core East Texas properties included 18 producing wells at the end of 2007, which the company plans to grow to 25 this year. In key Deep Bossier, Gastar had a total of 16,300 net acres at the end of December 2007.
East Texas holds a cache of worldly goods, a treasure of oil and gas resources that big-time rollers are paying big bucks to buy. Operators are swarming around the Deep Bossier hive, buzzing about its long-lived resources, high initial production and favorable decline rates.
Last November, EnCana Corp. (NYSE:ECA), with market capitalization of $53 billion, paid $2.55 billion to acquire all of the Deep Bossier natural gas and land interests of privately owned Leor Energy in Texas. EnCana now owns 100% of the Amoruso Field, which, in 24 months, went from zero production to more than 215 million gross cubic feet per day.
Let the wealth spread beyond the Amoruso Field to Gastar’s property. “Gastar’s neighbor in the Deep Bossier has seen huge wells, giving us confidence that even bigger wells for Gastar are around the corner,” said analyst Neil Dingmann . . .
For access to the full article, you must be a registered member - it's FREE.
Already a member? Please log in below
Not Registered?
Register today and enjoy all that SmallCapInvestor.com has to offer, including:
- Daily small cap stock profiles.
- Intra-day coverage of Russell 2000 companies.
- Research and insights from our analysts.
- Special reports.
