Wednesday, January 7, 2009

Bossier Shale: East Texas Gastar ( GST ) Hits Big!

Need more evidence that the Bossier Shale is better then the Haynesville Shale? Gastar Exploration ( GST ) came out and announced one of their Bossier Shale wells are hitting 23.0 MMCF per day of Natural Gas. This is an OUTSTANDING Well!

For those who aren't familiar with these shale plays around the USA and Canada, the Haynesville Shale is located in Louisiana and East Texas. Below the Haynesville Shale you have the Bossier Shale.

Gastar Exploration Ltd. (NYSE Alternext US:GST) and today announced that it has successfully completed its best producing well to date, the Belin #1, which was completed in two lower Bossier zones. The well is flowing at a combined initial gross sales rate of 41.2 MMcf/day on a 20/64ths inch choke with approximately 10,300 psi of flowing casing pressure. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin #1.

"The Belin #1 is our best producer to date, and based on the high quality of the reservoir rock and the strong initial production rate, we expect it will also be our best well to date in the Hilltop area in terms of estimated recoverable reserves," said J. Russell Porter, Gastar's President and CEO.

"To put this well into perspective, our biggest producer prior to the Belin #1 was the Wildman #3, which IP'ed at 23 MMcf/day. Comparing it against the entire play, we believe the Belin #1 is among the top ten best wells reported by any producer in any area of the Bossier," he added.
"The Belin #1 contains the highest porosity rock we have drilled to date, and we believe there is high-quality reservoir rock uphole from our initial lower completions that could allow us to maintain strong flow rates well into the future."

In addition, Gastar is currently drilling a sidetrack to the LOR #7 and expects to reach total depth in approximately 5 to 10 days. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR #7.