Gastar Exploration, Inc. Provides Update on Mid-Con 6H Well in Hunton Limestone Oil Play
Nov 21 13
Gastar Exploration, Inc. announced that the Mid-Con 6H well in its Hunton Limestone oil play reached a peak 24-hour gross initial production rate of 1,442 barrels of oil equivalent per day and averaged 1,133 BOE per day over the last 10 days. The Mid-Con 6H well was completed in early October and reached peak production 45 days after flow-back operations commenced. The well was completed in the Hunton Limestone formation utilizing a 22-stage fracture stimulation over the well's lateral length of 4,200 feet. Gastar has a 50% working interest in this non-operated horizontal well drilled in an area of mutual interest in Kingfisher County, Oklahoma. Gastar's seventh non-operated Hunton well, the Mid-Con 7H has been completed and is in early stages of flow-back with extremely positive early indications. Gastar's first operated well in Hunton Limestone oil play, the Burton 16-1H is currently being completed, with flow-back operations expected to commence by early December. Drilling operations began on Gastar's second operated well, the Townsend 6-1H on November 8, 2013, with flow back operations expected to commence by year-end.
Gastar Exploration, Ltd. Reports Consolidated Operating and Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Production Results for the Fourth Quarter of 2013; Provides CapEx Guidance for the Fourth Quarter and Full Year of 2013
Nov 4 13
Gastar Exploration, Ltd. reported consolidated operating and earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported total revenues of $18,840,000 compared to $9,443,000 for the same period a year ago. Profit from operations was $1,626,000 compared to loss from operations of $81,443,000 last year. Loss before provision for income taxes was $1,808,000 compared to $81,473,000 last year. Net loss attributable to the company was $3,942,000 or $0.07 per basic and diluted share compared to $83,457,000 or $1.31 per basic and diluted share last year. Adjusted net income attributable to the company was $1,594,000 or $0.03 per basic and diluted share compared to $2,000 last year. Adjusted EBITDA was $16,764,000 compared to $9,979,000 last year. In the Mid-Continent, net capital expenditures, excluding acquisition costs and divestment proceeds, in the third quarter of 2013 totaled $12.2 million.
For the nine months, the company reported total revenues of $61,030,000 compared to $32,518,000 for the same period a year ago. Profit from operations was $13,586,000 compared to loss from operations of $158,773,000 last year. Income before provision for income taxes was $49,706,000 compared to loss before provision for income taxes of $158,855,000 last year. Net income attributable to the company was $43,308,000 or $0.68 per diluted share compared to net loss attributable to the company of $163,802,000 or $2.58 per basic and diluted share last year. Net cash provided by operating activities was $39,239,000 compared to $21,056,000 a year ago. Purchase of furniture and equipment amounted to $484,000 compared to $235,000 a year ago. Acquisition of natural gas and oil properties amounted to $78,809,000. Adjusted net income attributable to the company was $10,868,000 or $0.17 per diluted share compared to adjusted net loss attributable to the company of $7,640,000 or 40.12 per basic and diluted share last year. Adjusted EBITDA was $48,437,000 compared to $19,990,000 last year.
For the third quarter, the company reported total production of 5,454 MMcfe compared to 3,493 MMcfe a year ago. Average daily production was 59.3 million cubic feet of natural gas equivalent (MMcfe) per day for the third quarter of 2013, compared to 38.0 MMcfe per day for the same period in 2012. Higher production volumes were primarily driven by the horizontal drilling activity in the liquids-rich area of the Marcellus Shale in Marshall County, West Virginia and in the Hunton oil play in Oklahoma, offset by natural declines. Third quarter 2013 volumes benefited from reduced curtailment of the Marcellus production due to reduced downtime and fewer high line pressure issues on the third-party-operated gathering system that transports the Marcellus production.
For the nine months of 2013, the company reported total production of 14,338 MMcfe compared to 9,339 MMcfe a year ago. Average daily production was 52.5 million MMcfe per day compared to 34.1 MMcfe per day for the same period in 2012.
The company has provided production guidance for the fourth quarter of 2013, which assumes the closing of the pending WEHLU acquisition by the end of November 2013. Net average production is estimated to be between 49 - 52 MMcfe per day. Liquids percentage of production is estimated to be between 35% to 38%.
Excluding the WEHLU acquisition, capital expenditures for the remainder of 2013 are expected to be approximately $34.5 million, resulting in total 2013 capital expenditures of approximately $115.6 million, excluding capitalized interest and general and administrative costs of approx imately $5.0 million. The company expects to spend an additional $26.1 million during the remainder of the year on Mid-Continent play.