Gastar Exploration Ltd. June 2011 J. Russell Porter,, President & CEO Michael A. Gerlich, CFO
Key Investment Considerations History of taking large position early and adding significant value Excellent assets Two core areas: Marcellus Shale & East Texas Marcellus JV & Recent Acquisition Multi-year drilling inventory in…
Gastar Overview Core assets provide significant exploitation opportunities and long-term growth potential Exchange c a ge / Ticker: c e NYSE S AMEX: GST GS Share Price(1): 3.25/share Shares Outstanding: 64.2 million Market…
Gastar Asset Summary Core assets Appalachia (100% Operated; 50-100% WI) 73,600 73,600 net acres in core of Marcellus Shale JV with Atinum closed November 1, 2010 Highly repeatable drilling inventory with significant surrounding…
Marcellus Shale Overview Focused in Marcellus fairway Pro forma JV acreage assignment and recent acq. acq GST controls 73,600 net acres in the Marcellus fairway GST has operational control of 100% of acreage and as operator…
Marcellus Shale JV Terms Atinum Marcellus I LLC special purpose entity owned by Atinum Partners Co. Leading private investment firm in the Republic of Korea 30 million cash at closing (November 1, 2010) 40 million carry on…
Marcellus Shale Operating Plan GST is focusing its near-term plans to exploit the liquids rich portion of the Marcellus shale First Marcellus well, YOHO 1 was drilled late 2009 and tested in early 2010 at stabilized gross rate of 1.5…
Marcellus Shale Well Economics Drilling in ultra-rich Marcellus window yields strong economic results on stand alone basis Coupling the ultra-rich economics with the JV drilling carry yields extraordinary economic results In…
Marcellus Shale Operating Plan Marshall 13
Marcellus East Acquisition Approximately 54,600 net acres 5 producing wells and 41 miles of 4 and 6 steel gathering system Total acquisition price of 28.9 million plus 4.4 million in evaluation and diligence costs Gastar tested…
East Texas 15
East Texas (Bossier) Overview Significant Consolidated Acreage Position Leon 19,400 net acres with 50-67% WI 100% O Operated d Prolific, Deep Bossier Production Individual well IPs 20 MMcfe/day; Strong IRRs Robertson Multiple…
Deep Bossier Development Plans Hilltop Area East Texas Gastar has successfully implemented Lower Bossier Offset Locations development program I iti l GST Deep Initial D B Bossier i wellll completed l t d iin 2004 Successfully…
Attractive Well Economics in the Bossier IRR and ROI vs. vs NYMEX Gas Prices Lower Bossier: IRR / ROI vs. Gas Price Analysis Key Lower Bossier Assumptions (Gross): (per well averages) At 5.50 gas, 51% IRR 2.8x ROI Drilling and…
Glen Rose Possible Development Locations 160 AC Horizontal Drilling Location Map 19
GST Acreage within Eagle Ford Oil Window 20
Eagle Ford / Woodbine Possible Locations 160 AC Horizontal Drilling Location Map 21
Condensed Consolidated Balance Sheet March 31, 2011 (( in millions)) ASSETS Cash and cash equivalents 12.5 Other current assets 15.7 Total current assets 28.2 Total T t l property, t plant l t and d equipment, i t nett…
Drilling Program 2011 Capital Expenditures Allocation ( in millions) 2011 Drilling Program Capitalized Costs(3) Project Area Operator Gross Net Net Capital (MM) 3.4 Bossier 12.8 Bossier GST 3.0 1.5 12.8 Glen Rose - Oil GST 2.0…
Hedging Overview Hedging Summary June 1, 2011 Average Total of Base Settlement Derivative Dailyy Notional Fixed Floor Short Ceilingg Period Instrument Volume Volume Price (Long) Put (Short) (in MMBtu's) Jul - Dec '11 11 Put…
Summary 27
Key Investment Considerations History of taking large position early and adding significant value Excellent assets Two core areas: Marcellus Shale & Deep Bossier Marcellus JV & Recent Acquisition Multi-year drilling inventory…
Gastar Exploration Ltd. (NYSE A Amex: GST) Gastar Exploration Ltd. J. Russell Porter CEO Michael Gerlich CFO 1331 Lamar, Suite 650 Houston TX 77010 Houston, (713) 739-1800 29
Appendix NON-GAAP FINANCIAL INFORMATION AND RECONCILIATION We use both GAAP and certain non non-GAAP GAAP financial measures to assess performance performance. Generally Generally, a non-GAAP financial measure is a numerical…
Appendix (continued) Reconciliation of Cash Flow from Operations Before Working Capital Changes and Special Items: For the Three Months Ended For the Year Ended March 31, December 31, 2011 2010 2009 2008 2007 2006 CASH FLOWS…
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