Gastar Exploration Inc. Declares Monthly Cash Dividend on 8.625% Series A Preferred Stock and 10.75% Series B Preferred Stock, Payable on July 31, 2014
Jul 8 14
Gastar Exploration Inc. announced that it has declared monthly cash dividends on its 8.625% Series A Preferred Stock and its 10.75% Series B Preferred Stock for July 2014. The dividend on the Series A Preferred Stock is payable on July 31, 2014 to holders of record at the close of business on July 18, 2014. The July 2014 dividend payment will be an annualized 8.625% per share, which is equivalent to $0.179688 per share, based on the $25.00 per share liquidation preference of the Series A Preferred Stock. The dividend on the Series B Preferred Stock is payable on July 31, 2014 to holders of record at the close of business on July 18, 2014. The July 2014 dividend payment will be an annualized 10.75% per share, which is equivalent to $0.223958 per share, based on the $25.00 per share liquidation preference of the Series B Preferred Stock.
Gastar Exploration Provides Update on Initial Utica/Point Pleasant Well
Jun 16 14
Gastar Exploration Inc. reported that it has reached total depth on the vertical pilot hole for its first Utica/Point Pleasant well in Marshall County, West Virginia. The Simms 5-UH well was drilled to a total depth of 11,410 feet and encountered approximately 92 net feet of pay in the Point Pleasant formation with measured porosities up to 17%. Gastar expects estimated formation pressures to be approximately 9,400 psi upon completion of the well. Gastar is currently plugging back the well in order to drill a 4,200 foot horizontal section in the Point Pleasant formation. After drilling the lateral, a 23-stage completion is planned followed by a three week 'soaking' of the well with first production expected in late August 2014.
Gastar Exploration Inc. Provides Update on its Hunton Oil Play Operations in Mid-Continent and in Appalachia; Provides Production Guidance for the Second Quarter of 2014
Jun 9 14
Gastar Exploration Inc. provided an update on its Hunton Oil Play operations in the Mid-Continent as well as its Marcellus and Utica operations in Appalachia. In the Mid-Continent Hunton Oil Play, they currently have 20 gross (10.1 net) recently drilled wells on production, of which 15 gross (7.2 net) wells are non-operated in the company area of mutual interest (AMI), two gross (0.2 net) are non-operated outside its AMI, and three gross (2.7 net) are operated wells. To date in the second quarter of 2014, five gross (1.7 net) non-operated wells have been placed on flowback. Production rates for these new wells have been generally strong, with one well coming on significantly above its projected type curve. The Kodiak 1-29H began flowback operations on May 4, 2014 quickly reaching an initial daily production rate of 1,666 barrels of oil equivalent (Boe) (86% crude oil) and achieved a 30-day average production rate of 1,259 Boe (83% crude oil). During the second quarter of 2014, they completed the drilling of the Easton 22-1H well, which is its first Lower Hunton (Chimney Hill) well on its recently acquired WEHLU acreage. The well was drilled to a total measured depth of 12,455 feet, including a 5,000-foot lateral. The Chimney Hill formation logs were encouraging as they showed porosity up to 10% as well as significant secondary vugular and fracture porosity. They are currently drilling the Easton 22-2H, an Upper Hunton (Bois d' Arc) well. They have completed setting the intermediate casing in the Easton 22-2H and are commencing drilling of the approximately 4,200-foot lateral section. Once drilling of the Easton 22-2H has been completed, they plan on completing the well with an open hole acid stimulation and briefly flow testing the Easton 22-2H before shutting the well in to commence completion operations on the Easton 22-1H. Completion operations on the Easton 22-1H are planned to consist of approximately 23 hydraulic fracturing stages. Both wells are scheduled to begin full flow back operations in late July 2014. They have a 98.3% working interest (80.5% net revenue interest (NRI)) in both of these wells. As previously reported, they commenced drilling its first Utica Shale/Point Pleasant well, the Simms U-5H, on April 3, 2014 in Marshall County, West Virginia. They are approaching total depth of 11,300 feet on the vertical pilot hole and expect to have the horizontal well completed and on production in the third quarter of 2014. The company's working interest in the Simms U-5H is 50.0% (43.2% NRI). Drilling of its second Utica/Point Pleasant well is scheduled to commence late third quarter 2014 in Wetzel County, West Virginia. The company's operating working interest in the first Wetzel County well will be 50.0% (41.0% NRI). In Marshall County on the Armstrong and Hansen pads, they currently have 14 gross (7.0 net) Marcellus wells in various stages of drilling. They plan to complete five gross (2.5 net) wells from the Armstrong pad in the third quarter of 2014 and five gross (2.5 net) wells from the Hansen pad in the fourth quarter of 2014. They continue to delay completion of three gross (1.5 net) wells previously drilled on the Goudy pad pending resolution of the previously disclosed non-lessor surface owner dispute. In the third quarter of 2014, the rig in Marshall County will be moved south to Wetzel County to drill two Marcellus wells and a Utica/Point Pleasant well. By year-end 2014, they expect to have 67 total gross (32.0 net) operated Marcellus wells and two gross (1.0 net) Utica/Point Pleasant wells capable of production in West Virginia. The third-party midstream operator servicing its Appalachia production experienced another pipeline rupture in May, which has resulted in the curtailment of its gross Marcellus production by an estimated 16% over the past three weeks. As of June 5, 2014, they resumed transporting full, unrestricted production through the midstream facilities.
The company provided production guidance for the second quarter of 2014. For the quarter, the company reported the decrease in production resulting from the most recent Appalachia pipeline rupture during this quarter has been offset by higher than expected production from recently completed Hunton wells. Therefore, they are reaffirming its second quarter production guidance range of 8,400 -- 8,800 barrels of oil equivalent per day (MBoe/d) and they currently anticipate that actual production will be in the upper end of that range. In addition, they expect the percentage of its second quarter production attributable to liquids to be on the upper end of previous guidance range of 42% to 44% due to higher crude oil and natural gas liquids (NGLs) content in its recent Hunton completions.