We are going to react to whatever is the best long term move for our shareholders: Porter
Gastar Exploration’s President and CEO Russ Porter spoke to Oil & Gas 360®’s Angie Austin at the EnerCom conference in Denver last week. Porter talked about enhancing company liquidity, the move to a pure play producer, and STACK economics.
Gastar Exploration Inc. (ticker: GST) is an independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar’s principal assets are in Oklahoma, referred to as its Mid-Continent area, where it is developing the primarily oil-bearing reservoirs of the Hunton Limestone horizontal play and testing the Meramec Shale/Middle Mississippi Lime formation. Gastar believes its Mid-Continent acreage is prospective for the Meramec Shale/Mississippi Lime formation, the Woodford Shale and the Osage and Oswego formations, which Gastar collectively refers to as the Mid-Continent STACK Play.
Interview Questions
- In the second quarter Gastar sold its Appalachian assets, production and reserves, and in May the company did a secondary offering that raised 44 million dollars. Could you talk about the nexus of those two events, and the company’s balance sheet and liquidity today?
- Gastar is now positioned as a pure-play Mid-Continent energy producer. What factors drove that decision?
- Gastar announced it would drill 9 wells on its northern STACK acreage in Kingfisher County and also participate in wells to de-risk the southern acreage in Canadian County. What are the differences in those two areas and their drilling programs?
- Thinking about costs of drilling and land in the STACK—-what are land costs now, how much budget is allocated to acquire more acreage? Is there enough rig and crew availability in the areas you’re drilling—-what are the day rates and completion cost trends?
- Gastar has said that the STACK play is one of the most economic plays in North America. Could you talk about the well results you are seeing in the STACK, and go through some of the economics? If oil stays closer to $40 per barrel, is the play economic for Gastar?
Gastar Exploration’s Breakout Notes from the 2016 EnerCom conference are available here.
You can listen to Gastar Exploration’s 2016 EnerCom presentation/webcast here.
For the company’s second quarter results, click here.
