2011-03-02-2011-02-28-2011-02-28

Acquired 3,300 gross acres in the liquids-rich Marcellus shale formation in exchange for paying 45% of the lease acquisition cost.

Gastar Exploration Ltd. (NYSE Amex: GST) and its joint-venture partner Atinum Marcellus I LLC have acquired 3,300 gross acres in the liquids-rich Marcellus shale formation in Marshall County, West Virginia, from PPG Industries, Pittsburgh, (NYSE: PPG) for an undisclosed price.

Gastar will pay 45% of the lease acquisition cost for a 50% interest. Initial drilling and completion activities on this acreage will be eligible for the drilling carry that is a part of the previously announced joint venture between Gastar and Atinum.

The acreage is located at PPG' Natrium, West Virginia chemicals site along the Ohio River and provides excellent access to water and gas infrastructure. As operator, Gastar expects to begin drilling during the second half of 2011, and has identified as many as 30 locations to be drilled during the next several years.

Personnel in Gastar's northeast regional office in Clarksburg, W.Va., will manage its operations on the PPG property, and Gastar expects to hire additional personnel in the region to support on-site operations.

PPG estimates the net present value of the future before-tax cash flows generated by this lease will total approximately $50 million over the life of the anticipated well development, which is estimated to be more than 30 years. This includes an initial cash payment of approximately $10 million.

Gastar president and chief executive J. Russell Porter says, "This lease, when combined with our existing leasehold in Marshall and Wetzel counties, helps Gastar create a large and mostly contiguous block of acreage within an area that is ultra-rich in natural gas liquids and condensate yields."