20© 2015 Gastar Exploration Inc.
MARCELLUS AND UTICA
21© 2015 Gastar Exploration Inc.
Core Position in the Marcellus and Utica
Core acreage proven in both the Marcellus wet gas and the Utica dry gas plays
~11,000 net acres in Marcellus and 8,600 leased (additional 1,900 pending(1)) net acres in dry Utica 50% WI, 41.0% NRI Marshall & Wetzel Counties
~35,700 net acres in eastern area 100% WI, 80% NRI Utica potential being studied
Acreage position lies near other leading players in the basin
1. 1,900 net acres pending includes acreage with lease negotiations in progress2. As of 06/30/2015. Includes ~1,300 acres in Pennsylvania expiring 2015 and forward
Appalachia Overview Marcellus and Utica Map
~46,700 total net acres(2)
MarcellusFairway
UticaFairway
UticaDry GasCore Gastar
WestAcreage
GastarEastAcreage
22© 2015 Gastar Exploration Inc.
Infrastructure Overview
Operational Improved run-time No flow restrictions expected
Processing Total system capacity to 720
MMcf/d Central receipt point capacity –
155 MMcf/d Adequate takeaway capacity Firm transport
50 MMBtu/d Additional firm available
Water System 14-mile system in Marshall County
Reduced water costs from $2.50/Bbl to $0.20/Bbl
Supports both Marcellus and Utica development
23© 2015 Gastar Exploration Inc.
NE Basis
Source: Tudor Pickering Holt & Co January 2015 Midstream Bulletin
~15 Bcf/d of incremental takeaway capacity announced since YE 2013
• Gas and NGL basis differentials widened in 2015• Gas infrastructure buildout to alleviate• REX reversal to west August 1, 2015 1.8 Bcf
24© 2015 Gastar Exploration Inc.
Marcellus ShaleActivity concentrated in liquids-rich portion of the play
1. Based on 06/30/15 Wright & Company, Inc. report utilizing SEC pricing2. Based on EURs and related type curves developed by the Company using assumptions and methodologies described on page 3 of this presentation
Marshall & Wetzel Counties, W. Va. Atinum 50% JV Partner High Btu gas and condensate yields
30–40 Bbls/MMcf condensate 40–50 Bbls/MMcf NGLs (pre-ethane recovery)
Marcellus Core Statistics 1P Reserves: 42.6 MMBoe(1)
Q2’15 net production: 6.5 MBoe/d; 42% liquids(11% oil)
Remaining locations: gross 113, net 57 51 gross PUDS
Summary Economics(2)
EUR Well Cost IRR PV-106.9 Bcfe $6.5MM 6% ($1.1MM)
Gross Appalachia Production
25© 2015 Gastar Exploration Inc.
Marcellus Drilling Locations
Marcellus Shale Development
Development Plan Gastar has drilled and completed
74 gross (35.4 net) horizontal wells and one vertical well to date
Recent completions:• Armstrong (7 wells) - 12/19/2014• Hansen ( 3 wells) - 12/26/2014• Goudy (3 wells) - 03/3/2015• Hoyt (2 wells) - 4/5/2015• Blake (2 wells) - 4/18/2015
No further drilling in 2015 No near term lease expirations
42% HBP 71% 2015/16 expirations include
automatic payment extensions
Marshall Co. - Marcellus WellsProducing - 74PUDS – 51
Wetzel Co. - Marcellus WellsProducing - 1Future Locations - 62
OHIO
West Virginia
OHIOWest Virginia
26© 2015 Gastar Exploration Inc.
Utica ShaleAcreage position lies in core of the Dry Gas Window
1. 1,900 net acres pending includes acreage with lease negotiations in progress2. Other operator production rates obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar
Exploration Inc.3. Based on 06/30/15 Wright & Company, Inc. report utilizing SEC pricing4. Based on EURs and related type curves developed by the Company using assumptions and methodologies described on page 3 of this presentation
Overview Underlies core 11,100 acre Marcellus
position 9,200 currently leased with an
additional 1,900 pending(1)
Majority of Utica acreage is held by Marcellus drilling
Utica Statistics 1P Reserves: 10.7 MMBoe(3)
Q2 2015 production: 6.8 MMcf/d (No liquids)
Pending locations: ~54 net 6 PUDS
Summary Economics(4)
EUR Well Cost IRR PV-1018.5 Bcf $13.0MM 10% $0.0MM
Utica Activity Map(2)
GPOR30 MMcf/d(Irons #4H)
GPOR30 MMcf/d(Irons #4H)
Hess1 wellIP: 25 MMcfe/d
Hess1 wellIP: 25 MMcfe/d
Rex3 wellsIP: 18–19 MMcfe/d
Rex3 wellsIP: 18–19 MMcfe/d
Antero2 wellsIP: 20–22 MMcfe/d
Antero2 wellsIP: 20–22 MMcfe/d
Antero5 wellsIP: 37–53 MMcfe/d (peak)
Antero5 wellsIP: 37–53 MMcfe/d (peak)
MHR 32 MMcf/d(Stadler #3UH)
MHR 32 MMcf/d(Stadler #3UH)
Eclipse23 MMcf/d(Tippens #6H)
Eclipse23 MMcf/d(Tippens #6H)
Gastar Simms U-5HIP 29.4 MMcf/dGastar Simms U-5HIP 29.4 MMcf/d
GPOR2 wellsIP: 29–45 MMcfe/d
GPOR2 wellsIP: 29–45 MMcfe/d
GPORIP: 21 MMcfe/dAvg. 14 MMcfe/d in Q3 ’13(Stutzman #1-14H)
GPORIP: 21 MMcfe/dAvg. 14 MMcfe/d in Q3 ’13(Stutzman #1-14H)
UticaDry Gas
Core
UticaFairway
OHIO
WESTVIRGINIA
Gastar Blake U-7HIP 36.8 MMcf/dGastar Blake U-7HIP 36.8 MMcf/d
RiceIP: 42 MMcfe/d(Bigfoot #9H)
RiceIP: 42 MMcfe/d(Bigfoot #9H)
Chevron25 MMcf/d(Howard Conner #6H)
Chevron25 MMcf/d(Howard Conner #6H)
MHR 46.5 MMcf/d(Stewart Winland #1300U)
MHR 46.5 MMcf/d(Stewart Winland #1300U)
Stone EnergyIP 30.0 MMcf/d(Pribble 6HU)
Stone EnergyIP 30.0 MMcf/d(Pribble 6HU)
Range Resources59 MMcf/d1 well
Range Resources59 MMcf/d1 well
SouthwesternIP 25.0 MMcf/d(Messenger 3H)
SouthwesternIP 25.0 MMcf/d(Messenger 3H)
Eclipse21.3 MMcf/d avg(Shroyer 2H&4H)
Eclipse21.3 MMcf/d avg(Shroyer 2H&4H)
27© 2015 Gastar Exploration Inc.
Utica Shale Development
Development Plan Utica Drilling Locations Blake well completed, 6,600’ lateral
with 34 stage frac ~$15.3MM D&C costs
Only 6 of 108 gross locations in PUD category
Timing of additional Utica development based on market conditions
Utica Drilling Locations
Blake U-7H6600’ Lateral Length
Simms U-5H4447’ Lateral Length
Marshall Co. - Utica WellsProducing - 2Future Locations - 77
Wetzel Co. - Utica WellsFuture Locations - 31
West Virginia
OHIOWest Virginia
OHIO
28© 2015 Gastar Exploration Inc.
Utica Shale Development
05/18/15
36.8
~6,235
6,617
34
21.7
18.3(1)
1.4(1)
Blake U-7H and Simms U-5H demonstrate the repeatability of dry gas Utica across Gastar’s Marshall County position
Blake U-7H Simms U-5H
Initial production date
Initial 48 hours sales rate (MMcf/d)
Flowing casing pressure psi
Lateral length (feet)
Frac stages
30 day initial production (MMcf/d)
ITD daily production average (MMcf/d)
ITD cumulative production (Bcf)
08/29/14
29.4
~6,700
4,447
25
19.8
9.8(1)
3.1(1)
1. Daily production average as of 07/31/2015
29© 2015 Gastar Exploration Inc.
Utica Acreage is the dry gas “Core of the Core”
Point Pleasant Shale Porosity Cross-Section
High PorosityHigh TOCHigh Carbonate Content
Lexington Shelf
Point Pleasant Shale Porosity Cross-SectionA A’
Up to 17% Porosity
4-6% Porosity
GASTAR SIMMS U-5H
Landing pointVERY HIGH
PRESSRURE, HIGH RATE
GAS WINDOW
30© 2015 Gastar Exploration Inc.
Point Pleasant Paleogeography
Point Pleasant Paleography and SSTVD Structure
Higher porosities in Pleasant Point are associated with the depositional environment of the Lexington Shelf Region
Point Pleasant SSTVD StructureEast and West Appalachian Acreage on same shelf with similar features
Structure is very benign in Point Pleasant over west acreage
East Marcellus acreage appears prospective in the Point Pleasant
Point Pleasant Paleogeography Source: After Wickstrom and others, 1992 and Cornell, 2000. Image from http://mcz.Harvard.edu/Departments/InvertPaleo/Trenton
Scotts Run Pad-EQT 3,221’ treated interval 24 hr. IP: 72.9 MMcf 22.6 MMcf / 1000’ 8,641 psi flowing
casing pressure 0.95 pore pressure gradient
31© 2015 Gastar Exploration Inc.
Appalachia Summary
53.3 MMBoe 1P reserves with SEC PV-10 of $75.9MM(1)
Appalachia Statistics 1P Reserves: 53.3 MMBoe(1)
1P PV–10: $75.9MM(1)
~ 57 net Marcellus locations on existing acreage ~ 54 net Utica locations on existing acreage
Net Drilling Locations
1. Based on 06/30/15 Wright & Company, Inc. report utilizing SEC pricing
Complete 7.0 gross (3.5 net) Marcellus wells Complete 1.0 gross (0.5 net) Utica wells
2015 Capital Activity
39© 2015 Gastar Exploration Inc.
APPENDIX
43© 2015 Gastar Exploration Inc.
Utica Shale Development
1. Other operator data obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc.
Utica Dry Gas Comparative Statistics(1)
44© 2015 Gastar Exploration Inc.
Point Pleasant Gross Isopach Thickness
GPOR Irons #4H
IP: 30.3 MMcf/d
Eclipse Tippens #6H
IP: 23.2 MMcf/d
MHRStalder #3UH
IP: 32.5 MMcf/d
GST SIMMS U-5H
IP: 29.4 MMcf/d
BLAKE U-7HIP: 36.8 MMcf/d
Low thickness variations in the Point Pleasant across Gastar’s acreage
CVXConner #6H
IP: 25 MMcf/dEclipse Shroyer #2H & 4H
Combined IP: 42.5 MMcf/d
MHRStewart Winland #1300U
IP: 46.5 MMcf/d
EQTScotts Run PadIP: 72.9 MMcf/d
45© 2015 Gastar Exploration Inc.
Utica Activity around Marshall & Wetzel Counties
1. Other operator data obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc.
(1)
46© 2015 Gastar Exploration Inc.
Simms/Dangel Cross-Section
Statoil USA Onshore Prop Inc Dangel 1-H Gastar Simms U-5H
5 Miles to west of Gastar’s acreage Porosity: 6 – 12% Net pay of +/- 74’
Target Depth: 11,350’ TVD Porosity: Avg. 11% (up to 17%) Net pay of 92’
48© 2015 Gastar Exploration Inc.
$0.63 $0.65
$0.77 $0.69
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
Marcellus Utica Mid-Continent Total Company
$0.79 $0.78
$0.01
$0.43
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
Marcellus Utica Mid-Continent Total Company
$3.63 $1.62
$8.04 $5.51
$2.53
$1.15 6,334
879
6,030
13,243
0
2,800
5,600
8,400
11,200
14,000
$0.00
$2.80
$5.60
$8.40
$11.20
$14.00
Marcellus Utica Mid‐Continent TotalCompany
Total Direct Costs Daily Production
$2.21 $0.19
$7.27
$4.38
$2.53
$1.15
$9.80
$5.53
$0.00
$2.40
$4.80
$7.20
$9.60
$12.00
Marcellus Utica Mid-Continent Total Company
TransportationLease Operating Expense
Prod. Tax Total Direct Costs vs. Daily Production
Production Costs by Area – YTD’15 ($/Boe)
Note: Excludes impact of hedge gains and losses
$10.57
$6.66
Workover expense
Workover expense