By Oil & Gas Financial Journal staff

Gastar Exploration Ltd.’s first two horizontal Marcellus Shale wells, the Wengerd 1H and 7H (44.5% WI, 37.5% NRI), produced at a combined gross initial 30-day rate of 7.1 MMcfd of 1285 btu/Mcf natural gas and 176 bbls of condensate per day. Production began August 11, and they are producing through a 5.5 inch casing at 1,250 psi flowing casing pressure.

Initial test rates for the wells were adjusted from numbers provided on July 27 to a combined 13.5 MMcfed (11.1 MMcfd and 410 bcpd) from 14.0 MMcfed (9.7 MMcfd and 720 bcpd) due to a metering error overstating condensate production.

J. Russell Porter, Gastar's president and CEO, said the company expects the wells to generate excellent rates of return. “These production volumes are in line with our independent reservoir engineer's initial proved reserve estimates of 8.3 bcfe per well,” he continued. He added that the company expects four additional Marcellus Shale horizontal wells to be brought on at the end of October and at least three more before year end 2011. 

The company has been active in bolstering its liquids-rich Marcellus portfolion with bolt-on acquisitions in the Marcellus Shale.

In a research note dated September 22, Global Hunter Securities said the wells “continue to demonstrate the productivity of the Marcellus and its potential to be the epicenter of domestic natural gas production.”

Gastar Exploration Ltd. (NYSE Amex: GST) is an independent company engaged in the exploration, development and production of natural gas and oil in the United States.