Oklahoma-centered Gastar Exploration Inc. (ticker: GST) has built its production portfolio primarily in the STACK play, where it holds 62,600 of its 89,600 net acres, spread across 5 core-zones. The company averaged approximately 5,700 BOEPD during Q1, 2017.
Gastar’s STACK assets
Gastar’s STACK assets are split between the Meramec, Osage, Oswego, and Hunton Limestone plays. The company estimates that approximately 1,142 net undrilled horizontal locations exist within the five core areas. As of Q1, 2017, the company was operating three drilling rigs across its STACK acreage.
Source: Gastar Exploration
In its Meramec acreage, which holds approximately 23,600 net acres; Gastar has non-operated participation in 11 wells, seven of which are producing. It also has 19 horizontal company-operated wells, with 17 of those producing.
The Osage acreage—comprised of approximately 47,700 net acres—holds non-operated participation in 10 wells, seven of which are producing, and six operated wells, of which two are producing, two are under flowback, and two are waiting on cement.
The Oswego asset—at approximately 11,400 net acres—shows strong potential with offset initial production rates of approximately 2,100 BOEPD. The company is participating in four wells, three of which are producing. Gastar itself has one horizontal well under production.
Gastar’s Woodford asset, which is comprised of approximately 19,900 net acres, exhibits potential with offset initial production rates of approximately 1,500 BOEPD. Gastar is participating in three producing wells, and is allowing activity from other operators to de-risk the play.
Source: Gastar Exploration
The WEHLU-Hunton play, which encompasses approximately 64,000 net acres, has 8 proved-undeveloped (PUD) wells in the Northern Hunton and 18 PUDs in the Lower Hunton. The company has 39 horizontal wells in the Hunton area as a whole, with 37 of those in the Lower Hunton.
In looking to expand its STACK acreage, Gastar secured 5,670 net STACK acres for $51.4 million in March, 2017.
Joint venture with DrillCo
As of December, 2016, Gastar entered into a joint venture with DrillCo, wherein the two companies established a drilling program designed to target the Meramec and Osage formations. The program itself will result in drilling 20 gross wells in the first stage. The number of wells drilled in the second and third stage will be determined both DrillCo and Gastar.
Gastar Exploration Inc. is presenting at EnerCom’s The Oil & Gas Conference® 22
Gastar will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
