This second sidetrack operation is expected to take four to six weeks and require approximately $1m in gross additional costs. The revised estimate of gross costs for the well is now $14m to drill and complete. Gastar has a 67% before payout working interest and approximate 50% before payout net revenue interest in the Donelson #4 well.
Russell Porter, president and CEO of Gastar, said: “We are encouraged since the Donelson #4 encountered several strong drilling breaks and gas shows in the targeted lower Bossier formations. We have obtained certain log information that confirms the presence of the B5 sand and the top of the B6 sand, which are the sands producing in the offset Belin #1 and Donelson #3 wells.
“While the additional costs and delays to re-drill a portion of the well will affect our first quarter 2010 production levels and capital expenditures, these deep Bossier wells provide the opportunity for excellent rates of return and prolific production levels.”
Gastar, an exploration and production company, is engaged in finding and developing natural gas assets in North America.
