Gastar Exploration Inc (NYSEMKT:GST) Continues To Rally
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.
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”.
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.