Gastar Exploration Inc (NYSEMKT:GST) Continues To Rally

Posted by George Brook February 18, 2014 0 Comment 1267 views


Ever since the $411 million market capped oil and gas exploration and production firm Gastar Exploration Inc (NYSEMKT:GST) announced its production forecast for the full year 2014, the stock has been most after amongst the investor community. It has forecasted that its average daily production of oil and gas equivalent to range between 9.7 and 11 million barrels.  In the past week trading it has gained 23 percent with respect to its market valuation.

Big Jump in 2014 Production Forecast

The declared production forecast numbers represent an 81% increase in its production figures for the full year 2014 to reach 54.6 million barrels of oil equivalent. The oil and gas mining firm also forecasted that “the present value of its future cash flow” will jump up by a huge 187 percent to reach $592.5 million in comparison to 2012.

The firm also disclosed that during its fourth quarter operations, its daily production averaged close to “55.2 million cubic feet of natural gas equivalent”. Of this output, 39 percent represented liquids while 61 percent represented natural gas output.

CEO Speak

Gastar Exploration Inc (NYSEMKT:GST) President and Chief Executive Officer J. Russell Porter in connection to the strong production forecast, has been quoted to have said that, “We have completed nine horizontal wells to date in the Hunton Limestone oil play, seven non-operated and two operated, and we have one operated well currently awaiting completion and three non-operated AMI wells in various stages of drilling or completion. We continue to believe that Hunton Limestone wells could generate an internal rate of return in excess of 60%, and possibly as high as 90%, at current NYMEX forward strip pricing”.

Operations

The oil and gas producer has its primary production oil wells located in the Marcellus Shale region located in West Virginia and is actively attempting to explore and develop its Hunton Limestone oil well located in Oklahoma.



About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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