2010-11-16-2010-11-10

To buy approximately 59,000 net leasehold acres in WV Marcellus in Preston, Tucker and Pendleton counties, gaining 500,000 Cf/d.

Gastar Exploration Ltd., Houston, (NYSE Amex: GST) plans to buy approximately 59,000 net acres of leasehold in the Marcellus shale in West Virginia from undisclosed private sellers for an undisclosed price.

The assets are in Preston, Tucker and Pendleton counties and include a gathering system consisting of 41 miles of pipeline, a salt-water disposal well and seven producing conventional wells making approximately 500,000 cubic feet of gas per day.

Prior to the agreement, Gastar had obtained an exclusive option on the leasehold with the right to conduct operations to test Marcellus potential on the properties. Gastar deepened an existing well and tested that vertical well at more than over 1.1 million cubic feet per day from the lower Marcellus.

Gastar also re-completed another existing vertical well and tested it at rates as high as 1 million cubic feet of gas per day from the lower Marcellus formation.

Gastar president and chief executive J. Russell Porter says, "This acquisition significantly increases Gastar's exposure to the Marcellus shale and positions the company for long-term reserve and production growth. This was a unique opportunity structured by Gastar to allow us to essentially de-risk the acreage from a Marcellus Shale perspective prior to committing to the acquisition. The results of the work undertaken by Gastar, and the fact that this acreage is on trend with other successful Marcellus Shale wells, confirm the attractiveness of this opportunity."

Porter adds that Gastar's joint-venture partner in its existing Marcellus shale assets has the right to participate in this acquisition.

The deal is expected to close in mid-December.