Gastar Exploration Provides 2015 Capital Budget, Production Guidance

Gastar Exploration Inc. (NYSE MKT: GST) has announced its 2015 capital budget and provided full-year 2015 production guidance.

The company's board of directors has approved a 2015 capital budget of approximately $257.3 million, comprised of $222.7 million of drilling, completion and infrastructure costs, $28.0 million of land and seismic expenditures, and other capitalized costs of approximately $6.6 million.

Gastar's 2015 capital budget is expected to provide for 44 gross (27.1 net) wells in the Hunton Limestone play, six gross (3.0 net) wells in the Marcellus Shale play, two gross (1.5 net) wells total in the Utica Shale play, including one gross (0.5 net) horizontal well and one gross (1.0 net) vertical well, and two gross (1.5 net) wells in the Mid-Continent Stack Play.

Gastar's 2015 capital budget is based on its projection that future lower Hunton Limestone wells will be completed at an average gross cost of approximately $5.5 million with an average 4,200-foot lateral, Marcellus Shale wells will be completed at an average gross cost of approximately $7.8 million with an average 5,000-foot lateral, Utica Shale horizontal wells will be completed at an average gross cost of approximately $16.0 million with an average 6,700-foot lateral, Mid-Continent Stack Play wells will be completed at an average gross cost of approximately $12.0 million with an average 10,500-foot lateral and the Utica Shale vertical well will be completed for approximately $3.0 million. Adjustments to the capital budget may be required based on drilling results or changes in actual or forecasted costs or commodities prices. Gastar is projected to operate approximately 74% of its budgeted drilling and completion capital expenditures for the full-year 2015. As such, Gastar could reduce a significant portion of capital expenditures if necessary to better match available capital resources.

Guidance for 2015

Based on the approved capital budget and drilling activity outlined above, Gastar is providing the following guidance for the full-year 2015:

Gastar is based in Houston.