Gastar Exploration Ltd. disclosed a financial and operational update on the company’s oil and gas activities in the onshore area of the United States. The company is active mostly in the Appalachian Basin in the United States.
Gastar Exploration reported that average daily production during the second quarter of 2011 was 18.6 million cubic feet of natural gas equivalents per day, up from 15.8 million cubic feet of natural gas equivalents per day in the comparable quarter in 2010.
Gastar Exploration recently drilled and completed two successful wells in the Appalachian Basin with a combined production rate of 15.5 million cubic feet of natural gas and 1,100 barrels of condensate per day. The company estimates that it has an additional seventy two well locations on its nearby properties.
Gastar Exploration reported that the company held cash and cash equivalents of $5.5 million at the end of the second quarter of 2011. The company also has $42.0 million of available borrowing under its credit facility.
Gastar Exploration estimates that required capital expenditures for the balance of 2011 are $37.3 million, with approximately 80% of these expenditures for oil and gas development in the Appalachian Basin. The company expects to fund this with cash on hand, operational cash flow and borrowing.
For more information on the company, go to www.gastar.com
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