GASTAR EXPLORATION, INC.(NYSEMKT:GST) To Host Analyst Meeting Today
GASTAR EXPLORATION, INC. (NYSEMKT:GST) has announced that it will be hosting an analyst meeting today. The company is expected to present updates on its operations in Marcellus shale and Utica plays and also brief the analysts about the future prospects of the company.
The timing and its significance:
Both Marcellus shale and Utica plays are very important oil field assets and many oil exploration companies are in the field to develop their assets here. GASTAR EXPLORATION, INC. (NYSEMKT:GST) has now expanded the drilling inventory in Marcellus shale and there are 106 undrilled locations remaining. It is estimated that the area will yield estimated ultimate recovery (EUR) of 6.6 Bcfe net and 8 Bcfe gross. As such, the company expects that the remaining resource to be developed will yield 700 bcfe.
Apart from updates concerning this area, the company is also expected to update the analysts about the progress in Utica/ Point Pleasant potential as well as Hunton Oil play area. The timing is of significance as crude oil rates are at relative high levels in spite of a dip in demand from consumers. Even natural gas is commanding a good price. The prices are expected to remain at these high levels in spite of falling demand on account of the crisis in Ukraine.
GASTAR EXPLORATION, INC. (NYSEMKT:GST) has approximately 94,400 acres under lease in the Marcellus Shale area. Its acreage lies in northern West Virginia and southwestern Pennsylvania, one of the most exciting unconventional plays in the entire North America. Apart from this asset, the company also holds interest in Oklahoma’s Hunton Limestone formation through a joint venture. While some areas are being developed by the joint venture, the company is also developing another part outside the joint venture.
Among other news, GASTAR EXPLORATION, INC. (NYSEMKT:GST) also announced recently that its borrowing base under revolving credit has been increased by 20% to $120 million. The company does not have any borrowings outstanding against this facility. This is a welcome step as the company will require this during development of its assets.