Gastar
Posted: Fri Apr 15, 2016 1:40 pm
Here is what Keith Kohl had to say about Gastar in his April edition of the Energy Investor.
Gastar Exploration is an independent oil, condensate, natural gas, and NGL exploration and development company. Its focus is on unconventional shale plays in the U.S.
Earlier in the year, we touted Gastar's business savvy: the company purchased the other half of a joint venture and gained 15,700 net acres in Kingfisher and Garfield County, Oklahoma.
You might remember that I told you in January that Gastar released news on the first flowback report of the Deep River well, which is in Kingfisher County in the Meramec shale play.
As it turns out, we've got nothing but good news to add to the pot.
The Deep River 10-1H easily met original production estimates for its first 90 days — it actually reached 713 barrels of oil equivalent per day, slightly over an estimate of 705 boepd.
Since then, Gastar has completed another well in Kingfisher County called the Holiday Road 1-1H. The well was spudded in February and drilled to depth in 12 days. [The well has been successfully completed and is now on flowback. Oil & gas production volumes won't be known for a month. - dan]
While the cost has not yet been confirmed, early March estimates for the well claimed drilling and completion would only run Gastar $4.1 million, even lower than the company's estimate of $5.5 million per well earlier in the year.
And in the spirit of emphasizing core assets, Gastar sold all of its assets and much of its undeveloped acreage in the Appalachian Basin. The transaction closed on April 8th and will gain the company $80 million to help pay back its revolving credit facility borrowings.
Shares have surged more than 70% since hitting a fresh 52-week low on February 25, 2016. And if Gastar can keep this kind of stellar performance up throughout 2016, it will only get better when the oil recovery takes place at the end of the year.
Gastar is rated a “Buy” at current prices, with a “Buy Limit” of $3.
Gastar Exploration is an independent oil, condensate, natural gas, and NGL exploration and development company. Its focus is on unconventional shale plays in the U.S.
Earlier in the year, we touted Gastar's business savvy: the company purchased the other half of a joint venture and gained 15,700 net acres in Kingfisher and Garfield County, Oklahoma.
You might remember that I told you in January that Gastar released news on the first flowback report of the Deep River well, which is in Kingfisher County in the Meramec shale play.
As it turns out, we've got nothing but good news to add to the pot.
The Deep River 10-1H easily met original production estimates for its first 90 days — it actually reached 713 barrels of oil equivalent per day, slightly over an estimate of 705 boepd.
Since then, Gastar has completed another well in Kingfisher County called the Holiday Road 1-1H. The well was spudded in February and drilled to depth in 12 days. [The well has been successfully completed and is now on flowback. Oil & gas production volumes won't be known for a month. - dan]
While the cost has not yet been confirmed, early March estimates for the well claimed drilling and completion would only run Gastar $4.1 million, even lower than the company's estimate of $5.5 million per well earlier in the year.
And in the spirit of emphasizing core assets, Gastar sold all of its assets and much of its undeveloped acreage in the Appalachian Basin. The transaction closed on April 8th and will gain the company $80 million to help pay back its revolving credit facility borrowings.
Shares have surged more than 70% since hitting a fresh 52-week low on February 25, 2016. And if Gastar can keep this kind of stellar performance up throughout 2016, it will only get better when the oil recovery takes place at the end of the year.
Gastar is rated a “Buy” at current prices, with a “Buy Limit” of $3.
