GST reports strong well in OK

[dan_s]

Gastar Exploration reports Mid-Con 7H well peak rate of 906 barrels per day
Gastar Exploration announced that the Mid-Con 7H well in its Hunton Limestone oil play in Oklahoma reached a peak 24-hour gross initial production rate of 906 barrels of oil equivalent per day and subsequently averaged 782 BOE per day over the following 17 days. The Mid-Con 7H well is flowing these rates naturally through 4.5-inch production casing as compared to the previously announced wells which were flowing through production tubing with the assistance of gas-lift. The well was completed in the Hunton Limestone formation utilizing a 19-stage fracture stimulation over the well's lateral length of 4,250 feet. Gastar has a 48% working interest in this non-operated horizontal well drilled within an area of mutual interest ("AMI") in Kingfisher County, Oklahoma. The company said "The Mid-Con 7H well has continued to flow up the production casing and has yet to cease production so it can be placed on gas-lift. At an estimated drilling and completion cost of $5M the Mid-Con 7H well should generate a substantial internal rate of return at current NYMEX forward strip pricing."

Gastar's Hunton Limestone drilling program is the key this year. If they keep completing wells like this, the stock should move a lot higher. - Dan