Gastar Exploration Update - Feb 22

[dan_s]

Use this example;

Gastar's first STACK well has an EUR ("estimated ultimate recovery") of 705,000 boe (gross). Their net revenue interest is 80%, so their share is 564,000 boe.

You can do the math yourself. Just assume all-in cash costs to produce the well are $10/boe (probably lower since these wells flow on their own). The wells cost around $5 million to drill & complete.

Assume the well produces 50% oil, 40% natural gas and 10% NGLs. You pick the prices you want to use for each commodity and see how the math works out.

BTW these wells produce about 50% of their EUR in the first two years.

For good info on STACK, go to this website link and look at slides 10-16; http://files.ctctcdn.com/c15c174c401/20 ... b991eb.pdf

[bobs]

Got it........so even @ $30 it makes good business sense for GST or anyone who might acquire the rights to drill the well from GST