GST

[dan_s]

Gastar Exploration (GST) has a bunch of leasehold in central Oklahoma with exposure to the zones being drilled by CLR, NFX and XEC. The area is being called SCOOP, STACK and SOHOT (by UNT). Here is what CLR has to say about it:

SCOOP Production Continues to Climb

Continental's South Central Oklahoma Oil Province ("SCOOP") position has expanded vertically to include its most recent discovery, the Springer oil play. Located in the heart of SCOOP, the Company's Springer position augments its Woodford leasehold and expands the Company's net resource potential and inventory. Continental's SCOOP leasehold position of approximately 471,000 net acres has productive potential in multiple formations.

In third quarter 2014, SCOOP net production averaged 36,346 Boe per day, an increase of 6% sequentially from the second quarter of 2014 and 81% above third quarter 2013. The Company completed a total of 18 net (23 gross) operated and 2 net (27 gross) non-operated wells during third quarter 2014 in SCOOP. The Company is currently running 27 operated rigs in SCOOP, with 10 in the Springer formation and 17 in the Woodford formation. The Company concluded third quarter 2014 with an inventory of approximately 18 net (28 gross) operated SCOOP (Springer and Woodford) wells drilled, but not yet producing.

Springer Discovery Delivering Strong Results in SCOOP

Continental has announced 15 producing wells in the oil fairway of the Springer with an average 24-hour initial production (IP) rate of 1,230 Boe per day and an average 30-day IP of 830 Boe per day. These are all approximately 4,500' lateral wells. The Company's estimated ultimate recovery ("EUR") model for a 4,500' lateral Springer well is 940,000 Boe, with 67% oil and 17% natural gas liquids, at an average completed well cost of $9.7 million. To further improve recoveries and enhance economics per well, the Company will begin drilling its first 7,500' extended lateral in the Springer in fourth quarter 2014. Continental estimates a 7,500' extended lateral well will recover 1.6 million Boe with a cost of approximately $12.1 million.

[kenm]

What did you think of Q3 report today?

[dan_s]

I just finished updating GPOR, which looks fantastic. I will now look at GST.

[dan_s]

Net income attributable to Gastar's common stockholders for the third quarter of 2014 was $9.8 million, or $0.15 per diluted share. Excluding the impact of a $7.6 million gain resulting from the mark-to-market of outstanding hedge positions, adjusted net income attributable to common stockholders was $2.2 million, or $0.03 per diluted share.

Very close to my forecast. I am updating the forecast model now.

[dan_s]

I expect Gastar's pfd stock to run quickly back over par with this announcement.

At September 30, 2014 Gastar had $46.6 million in available cash and cash equivalents and an undrawn $145.0 million borrowing base on our revolving credit facility. We expect to fund our remaining 2014 capital program through existing cash balances, internally generated cash flow from operating activities and borrowings under the revolving credit facility, or some combination thereof.